Advocacy and Impact

When Gov. Sherrill moved in May to delay the REAL Rule — the sweeping flood and coastal development regulation created under the Murphy administration — it opened a narrow but critical window for the industry to shape what comes next. The Department of Environmental Protection has since convened a working group of just nine organizations to work through revisions to the rule over six weekly meetings running from now through September. CREDA New Jersey is one of them, sitting alongside NJBIA, the NJ Builders Association, and the League of Municipalities. CREDA New Jersey has been heavily involved in the process and has testified before the Legislature in recent months on how the REAL Rule would affect development timelines and project feasibility across New Jersey. That testimony laid the groundwork for the role we now hold in DEP's rulemaking process. With a seat in the working group, our Regulatory Committee's ongoing analysis of the REAL Rule's impact on commercial development now has a direct line into how the regulation gets rewritten — not just a chance to comment after the fact.

What's Next

Our full attention is on this issue for as long as the working group meets. We'll keep members updated as the process unfolds, and in the coming weeks we'll be looking for member input to help shape the positions CREDA brings to the table. This is exactly the kind of advocacy CREDA membership is built to deliver: showing up early, building credibility with regulators, and turning that credibility into influence when it matters most.

We happy to report that NJDEP's proposed substantial changes upon adoption to the Site Remediation Reform Act amendments rule proposal published will not be adopted. Therefore, under the laws that governor administrative rule making, this residual proposal from the former Governor's administration is officially dead.

NAIOP NJ worked closely with Governor Sherrill's Administration to educate them on the significant negative impacts to advancing redevelopment statewide. In addition, we worked successfully with partners to raise awareness and stood in absolute opposition to this provision. 

CLICK HERE for our official comment letter, developed with the support of NAIOP NJ technical experts on our Regulatory Affairs Committee. Leveraging the time and talent of our members is a big part of our success. Thanks for all that stepped up to support this industry priority. 

Thanks for the Governor's team for listening and for making this decision efficiently as a result of Executive Order #7. We would also like to credit Senator Bob Smith for going on record to support our position that the DEP proposal went past the carefully negotiated language of the LSRP laws he has championed. 

CEO Dan Kennedy Offers Commercial Real Estate Industry Perspective:

EAST BRUNSWICK, N.J. (May 28, 2026) – CREDA NJ, the Commercial Real Estate Development Association, applauds Governor Mikie Sherrill’s decision to delay the application of NJDEP’s REAL Rule by at least one year from the current mid-July 2026 deadline. Dan Kennedy, NAIOP NJ Chief Executive Officer, offers the following statement:

“We commend Governor Sherrill and NJDEP Acting Commissioner Potosnak for showing decisive leadership in delaying the implementation of NJDEP’s Resilient Environments and Landscapes (REAL) Rule for at least one year. The commercial real estate industry is not opposed to reasonable, common-sense land use rules that will protect properties from flooding. We look forward to right-sizing this over-the-top regulatory action into a workable set of solutions to address our state’s documented flooding issues.

This adopted rule faced historic bipartisan opposition from a wide range of stakeholders, including state legislative leaders and more than 130 mayors. Adopted in the final hours of the Murphy Administration, the REAL Rule goes far beyond predictable risks from climate change. It makes all of New Jersey’s land use rules far more difficult to administer.

This move by Governor Sherrill aligns with her stated policy goals related to government efficiency, supporting redevelopment, increasing housing supply and reinvesting in public infrastructure. We stand ready to work with the Sherrill Administration to create fair and effective land use regulations based on sound science."

Dan Kennedy is available as a subject matter expert to speak about the potential impacts of the REAL Rule on the commercial real estate development industry. CREDA NJ is deeply engaged with this topic.