Members of North Carolina’s three NAIOP chapters traveled to Raleigh last week for a day of legislative advocacy at the State Capitol. The two-day event was a key opportunity for attendees to collaborate on issues facing commercial real estate and advance the industry’s interests with state lawmakers.
NAIOP's State of North Carolina Economic Impact Card on Commercial Real Estate's National and State Economies reflects the industry's strong contributions to North Carolina's economy. North Carolina's commercial real estate industry ranks sixth highest in the nation for overall contribution to the state's Gross Domestic Product, creating and supporting $44.1 billion and 312,000 jobs in 2023. NAIOP members used this important information in meetings with lawmakers as part of their three legislative priorities: economic development, transportation and infrastructure, and regulatory reform.
Continued economic development remains a top priority for the NAIOP chapter, a state experiencing incredible economic growth and ranked by CNBC as the best state to do business in both 2022 and 2023. NAIOP North Carolina chapter's advocacy for legislation to expand commercial development included tax incentives for remodeling underutilized commercial buildings, which is also a federal priority for NAIOP Corporate. Increased collaboration between the state's incentive-based and workforce training programs was also promoted to retain, expand and attract private sector investment.
North Carolina's rapid economic growth also requires a modern, efficient infrastructure system that meets current and future demands. The Chapters support increased funding for the state's infrastructure systems, including sustainable roads, reliable electric generation and transmission, and water treatment plants. Without these and other infrastructure investments from the Legislature, commercial real estate and the private sector cannot realize their current and future economic potential.
When it comes to regulatory reform, North Carolina's NAIOP won a major legislative victory last year by lobbying for passage of Senate Bill 677, which brings more transparency, predictability, and accountability to local permitting processes. The new law's permitting reforms give permit applicants the option to seek a review by a certified third party (architect or engineer) if local governments cannot make a decision within 45 days of the application. While this is a positive step for commercial development, the state can do more by bringing consistency to the interpretation and application of state regulations.
Other regulatory reforms advocated by the Chapters include a comprehensive review by the Legislature of state regulations that are repetitive, vague and unnecessarily burdensome. State efforts in these areas are essential to fostering continued commercial development, economic growth and job creation.
NAIOP members met with nearly 30 legislators and their staff during their visit to Raleigh, including a delegation representing North Carolina's NAIOP meeting with Senate President Phil Berger and House Speaker Tim Moore. These meetings with state leaders strengthened relationships ahead of next year's session following the November 5 election.
Like many other states, the North Carolina Legislature is struggling to pass a new budget before the start of the next fiscal year. Many of North Carolina NAIOP's 2024 priorities will be affected by the new budget, including support for the Job Development Investment Grant Program. Unfortunately, budget negotiations between the Republican-controlled state House and Senate have stalled over funding priorities. The state Senate has threatened to withdraw from negotiations on spending levels proposed by the House.
Advocacy days at the State Capitol and the latest developments in budget negotiations underscore the importance of North Carolina chapters staying involved and participating in the legislative process, as their advocacy efforts are making a difference in commercial real estate and economic development in the Tar Heel State.