Growth vs. Regulation: The Future of Industrial Real Estate

NAIOP Washington on Industrial Development: Changing Perceptions, Policy Headwinds, and an Economic Impact Study  Bill Condon and Matt McGregor host NAIOP Washington guests Drew Zaborowski (Bear Creek Real Estate Development) and Carter Nelson (NAIOP WA) to discuss challenges facing industrial development in the state of Washington. They describe persistent misconceptions that industrial means outdated, polluting factories and growing anti-industrial rhetoric driving local dock-door restrictions, size limits, and moratoriums often enacted without data on lost tax revenue. Key headwinds include broad, vague environmental justice policies that can shift responsibility for past impacts to new developers, the 2021 energy code adding roughly $5 per square foot through electrification, EV-ready parking, solar, and testing requirements, as well as the grid-capacity limits that force costly infrastructure upgrades. They highlight Pierce County as constructive to work with and explain NAIOP's industrial economic impact study (available on NAIOP WA's website) as a data tool to counter "low-wage job" claims and support advocacy, funding, and member involvement. 0:00 Introduction to the guests and NAIOP WA 2:15 Drew Zaborowski's background and role in government affairs 5:05 Legislative headwinds and anti-industrial rhetoric 7:45 Environmental justice and the burden on new development 10:15 Debunking the low wage job myth in industrial sectors 12:50 Modern facilities vs the old factory perception 15:10 The impact of the 2021 energy code on development costs 18:25 Power grid capacity and utility challenges 20:45 Success stories in Pierce County and Frederickson 22:15 The NAIOP Industrial Economic Impact Study 23:00 How to get involved and support advocacy efforts