A social media comment by gubernatorial candidate Mikie Sherrill, one offering support for a moratorium on warehouses, was quickly challenged by two key players in the logistics sector.
Dan Kennedy, the CEO of NAIOP-NJ, and David Greek, the chair of Circulate NJ, both responded sharply to Congresswoman Sherrill, who commented on X on Feb. 13 that she would support a moratorium, citing current vacancy levels and other concerns.
“Recent reporting makes it clear — warehouse vacancies are at the highest levels in more than 10 years,” she wrote. “There are legitimate concerns from local communities around the environmental impact, increased traffic, and quality of life in our towns.
“I support a moratorium on warehouse development in New Jersey. In Congress, I’ve made our environment a top priority — and as governor, I’ll take that same approach working hand-in-hand with local communities to develop a comprehensive plan to move forward.”
Kennedy questioned if Sherrill was rushing to her decision.
“In our next governor, New Jersey needs someone who will listen to all voices before forming their judgement on important land use matters,” he said. “NAIOP NJ does not support a statewide moratorium for any class of real estate.”
Kennedy also questioned whether Sherrill would be able to implement such an idea.
“We do not believe the governor of New Jersey has the legal authority to take such a punitive and unnecessary action – overrunning local decisions to increase tax ratables and replace obsolete real estate with new, higher-demand product, and disrespecting the constitutionally protected rights of property owners – regardless of what they say on the campaign trail,” he said.
David Greek, the managing partner and third-generation leader of Greek Real Estate Partners, and the chair of Circulate NJ, an advocacy group for the logistics industry, said the idea of moratorium needs more discussion and a greater level of understanding.
“Circulate NJ does not lobby or advocate for any specific laws or legislative proposals,” he said. “We do feel, however, that it is important to address the overall issue of warehouse vacancies in an educational manner. Vacancy rates are merely a moment in time while secular trends like increasing e-commerce consumption and more sophisticated distribution strategies are much more permanent.”
Greek said available space can be a good thing – and are not always reflective of future trends.
“We have an excess of many things in the United States right now, including respirators, medical grade masks, etc.,” he said. “These are short-term issues. They do not all require some form of government intervention. Moreover, an excess of industrial space means decreasing costs for occupiers, which means decreasing costs for consumers. This is a good thing for working class New Jerseyans.
“Excess existing capacity will also help slow down costs, which will increase rapidly when demand returns, which it almost certainly will.”
