NAIOP SoCal issued the following statement in response to yesterday’s signing of AB 98. AB 98 was jammed through the Legislature at the 11th hour with no consensus or consultation from key stakeholders, including the industrial real estate community, and will have sweeping negative impacts on the supply chain, jobs and greenhouse gas emissions.
“We are extremely disappointed the Governor signed this flawed legislation despite more than 700 businesses, cities and counties urging him to veto the bill,” said Timothy Jemal, CEO, NAIOP SoCal. “Shutting out the stakeholders directly impacted by the bill made no sense. Rather than offering practical solutions, AB 98 imposes statewide mandates that strip local control, stunt economic growth, negatively impact the supply chain and will push more warehouses further away from ports and population centers, increasing emissions and costs to consumers.”
“Hundreds of NAIOP SoCal Members who are directly impacted by AB 98 urged the Governor to veto this costly, burdensome bill, because our concerns were never heard or addressed in the process,” said Eric Paulsen, NAIOP SoCal Board President. “We are committed to strengthening the voice of commercial real estate in Southern California and Sacramento and will seek a fix to this harmful bill in next year’s legislative session.”
Assembly Bill 98 (Carrillo; D-Palmdale and Reyes; D-San Bernardino) imposes statewide mandates on warehouse locations and operations, overriding local control of land use decisions. It requires buffer zones, truck route restrictions, and zero-emission vehicle standards, severely limiting land for logistics uses and likely driving more businesses out of California. This could lead to significant job losses, hinder economic growth and worsen environmental outcomes due to increased transportation needs.The bill’s rigid requirements and lack of flexibility, such as no sunset clause and burdensome affordable housing provisions, will stifle industrial development and harm local economies.
About NAIOP SoCal
NAIOP SoCal comprises nearly than 1,300 members serving southern California. NAIOP SoCal is the leading organization in Southern California for developers, owners and related professionals in office, industrial, retail and mixed-use real estate. NAIOP SoCal advances responsible commercial real estate development and advocates for effective public policy. For more information, visit www.naiopsocal.org.
