This bill mandates that municipal agencies cannot approve applications for the development or expansion of warehouses exceeding 100,000 square feet unless a certificate of need is issued by the Office of Local Planning Services within the Department of Community Affairs. Developers must notify the municipal agency of their intent to submit an application before applying for the certificate of need and must secure this certificate prior to submitting their development application.

Additionally, the Office of Local Planning Services is tasked with establishing rules and regulations to determine the criteria for issuing a certificate of need. This includes requirements that at least 90 percent of the proposed warehouse space must be leased or committed to active use if it will house multiple businesses, or 100 percent if it will house a single business. The bill aims to address the issue of vacant warehouses and ensure that new developments meet community needs by being occupied and utilized effectively.