The Passage of AB 98 Threatens Southern California’s Economic Backbone
NAI Capital Commercial stands ready to collaborate with organizations like NAIOP and BOMA to advocate for policies that protect public health while preserving jobs, local autonomy, and the future of our goods movement industry.
Chris Jackson, CEO of NAI Capital Commercial, next to the company logo in the corporate headquarters lobby.
October 2024 | Chris Jackson, CEO, NAI Capital Commercial
We are deeply disheartened by Governor Newsom’s decision to sign AB 98, a bill that strikes at the very heart of Southern California’s logistics industry. At a time when inflation, job creation, and affordable housing are paramount concerns for our communities, this legislation imposes unintended consequences that threaten local economies and undermine the critical need for local land-use planning.
The logistics sector is a vital driver of economic growth, providing thousands of jobs and sustaining supply chains that support countless industries. AB 98 imposes burdensome and unfunded mandates that will stifle this job growth and disrupt the flow of goods at a time when we can least afford it. With supply chain challenges still looming, restricting the development of warehouse facilities will only compound existing pressures on ports, logistics operators, and businesses across the state.
While we support responsible development, this bill’s broad scope overreaches in a manner that will harm not only the warehouse industry but also manufacturing and agriculture, sectors that are critical to our state’s economic lifeblood. The Goods Movement industry is already facing significant challenges, and this legislation, enacted without sufficient input from affected stakeholders, exacerbates the issue.
This bill was rushed and signed into law without enough due diligence. We urge the Legislature to address the serious flaws in AB 98 through a transparent and collaborative process in the upcoming legislative session. It is imperative to find solutions that balance environmental concerns with economic realities, especially when our communities are already grappling with inflation and housing affordability challenges. We stand ready to collaborate with organizations such as NAIOP and BOMA to urge lawmakers to develop policies that protect public health without sacrificing jobs, local autonomy, and the future of our goods movement industry.
