Last year was a busy one in Arizona, from contentious housing policy debates to a stalemate on water policy and a lengthy and costly election with 13 statewide ballot measures. A few major wins for the commercial real estate industry include a veto of a bill that would have effectively eliminated the utility of the GPLET incentive, and the passage of Prop 479, a measure to continue the half-cent sales tax for transportation funding in Maricopa County.
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The new year marks a new legislative session, and NAIOP Arizona is working with lawmakers to ensure Arizona maintains sustainable development, continues to attract businesses and solidifies our reputation as a hub for economic opportunity. Our goal in 2025 is to positively impact legislation and policy affecting commercial real estate and economic development, and ensure the industry has a seat at the decision-making table. From municipal councils to the state legislature, we’ll guarantee the industry’s perspectives are incorporated into decision making at all levels of public policy. Going into 2025 our focus will be partnering with municipalities to develop effective tools that attract businesses and investments, engaging with legislators and stakeholders to promote legislation that addresses housing needs, advocating for policies that balance resource sustainability and economic realities, and collaborating with regulators to achieve compliance with new standards in a way that supports economic vitality.
To remain competitive in attracting businesses and promoting economic development, Arizona’s municipalities need flexible and effective tools. NAIOP will advocate for legislation that expands and strengthens incentives for development and redevelopment. These measures are vital for fostering investment in communities, spurring job creation and ensuring that Arizona continues to outpace other states in economic growth. With Arizona at a critical crossroad, it’s important that we have the tools we need to compete on a national and international scale.
One of our top priorities for the year is addressing Arizona’s housing challenges through targeted reforms. A major challenge to developing the missing middle of housing in Arizona is due to the construction defect laws, which make insuring for sale, shared wall products cost prohibitive. In order to build condos and townhomes to meet Arizona’s growing housing needs, we must reform our ineffective construction defect statutes. By allowing developers to build and sell condos and townhomes, these reforms will help alleviate housing shortages, support mixed-use developments and contribute to Arizona’s overall economic health.
Water management and conservation will remain a focal point for all policymakers in Arizona, especially in light of the state’s continued growth and the need for sustainable practices. While there is no silver bullet to managing our water challenges, NAIOP is committed to working with the governor, legislature and stakeholders to find solutions that have meaningful impact. And our Water Policy Task Force and Public Policy Committee will continue to work with policymakers and stakeholders to identify real solutions to improve Arizona’s water supply and management that do not detrimentally impact the state economy and prevent development without providing any water savings. Our state has been managing and conserving water well for decades and we intend to help build on that success without creating new legal and regulatory patchworks that would cripple our continued economic development. We need a balanced, thoughtful approach that safeguards this precious resource while enabling continued growth.
Without concerted efforts from the Arizona business community and our congressional delegation, the new EPA air quality standards have the potential to cripple economic development in the Greater Phoenix area. These new standards do not consider the global and interstate transport of particulate and ozone that unfortunately settle in Maricopa County due to topography. We need real policies to improve air quality and not a nationwide one-size-fits-all approach that doesn’t factor in the whole picture. We’ll collaborate with business groups and policymakers to advocate for a new approach to the standards that will improve public health without needlessly stymying development.
NAIOP’s public policy agenda reflects our commitment to advancing legislation and policy that supports commercial real estate while addressing broader economic and environmental challenges. The year ahead presents an opportunity to work collaboratively with policymakers to ensure that Arizona remains an attractive destination for businesses and a leader in economic growth.
As the legislative session gets underway, NAIOP will be at the forefront of advocacy, championing policies that benefit the commercial real estate industry and the state as a whole. Stakeholders across the industry are encouraged to engage with us on these efforts. Together, we can build a legislative framework that drives growth, fosters innovation, and positions Arizona for long-term success. You can follow our work at naiopaz.org/publicpolicy.
Author: John Baumer is director of government relations for NAIOP Arizona.
