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Addressing Common Concerns
Since the start of the year, I’ve been fortunate to have visited nearly 20 chapters across our network, with the goal of reaching 30 by year-end. The caliber of our chapters is unmatched. I’ve been impressed with the quality of the
programs and events I’ve attended, as well as the hospitality and camaraderie of the members I’ve met along the way. Thank you for welcoming me so generously.
Brian Walker
While the areas our chapters serve differ in size, location and focus, commonalities have emerged in our conversations. Issues that begin in one market can rapidly spread to others. The value of an organization like NAIOP is that we can compare notes, share strategies and work together on the following issues for the greater good of the industry.
Permitting Delays
Members of almost every chapter are concerned about permitting and the massive challenges it brings. Local building permits are an essential and fundamental requirement for development, rehabilitation and improvement of commercial real estate; however, the process for obtaining these permits varies by city and county and can be cumbersome and costly.
The real estate adage that “time kills all deals” is true. Consistency and transparency in local permitting processes will help all of us do our jobs more efficiently in providing communities with properties for people to live, work and play. Some governments have created legislation to ease the process.
Using Georgia as a model, North Carolina enacted legislation last year that establishes a 45-day timeline for local permitting entities to review applications. If the permitting entity is unable to meet this timeline, the applicant can seek review by a certified third party. Our North Carolina chapters were key to the bill’s development and passage, and the approach can inspire efforts in other states.
Office Vacancy
Markets across North America are still rebounding from the pandemic and its ripple effects. Downtowns are struggling with underused office buildings, reduced tax revenues and an influx of crime.
NAIOP’s four Canadian chapters supported the government’s call for federal workers to return to the office on a hybrid basis beginning in September. The decision is consistent with the private sector and is a positive step toward the economic revitalization of cities that depend on property valuations and municipal tax collections.
To spur the conversion of underused office space to other uses — including residential, mixed use and distribution centers — NAIOP was instrumental in introducing bipartisan legislation that provides a 20% tax credit to owners for the conversion of commercial properties. This bill reaches beyond the urban core and into cities of all sizes across the country. Its impact on tax revenues will replace dollars lost to underutilized and defaulted properties, providing building owners with the opportunity to create more sustainable, energy-efficient spaces.
Access to Capital
Capital and credit markets remain extraordinarily tight, and overall investment sales activity was down 19% year over year in the first quarter of 2024. NAIOP is working to ensure access to capital and credit is less constrained and with elected officials toward a more certain regulatory environment.
I hope to see many of you this fall in Las Vegas for our I.CON Cold Storage (Oct. 7) and CRE.Converge (Oct. 8-10) conferences. With a presidential election to follow shortly thereafter, we’ll have much to discuss regarding its impact on our businesses and industry.
Brian Walker, President, Burns Scalo Real Estate
2024 NAIOP Chair
