If you own, manage, or invest in New Jersey commercial real estate, your environmental risk profile was rewritten on January 12, 2026.
When Governor Murphy signed the Protecting Against Forever Chemicals Act (S-1042/A-1421), NJ ended the wait-and-see era for per- and polyfluoroalkyl (PFAS) substances. For years, we’ve talked about these forever chemicals in the abstract. Now they’ve become a primary driver of property devaluations, transaction failures, and mandatory remediation costs that can reach into the millions.
While NJ laws address the legality of these chemicals, the Natural Resources Defense Council (NRDC) highlights the toxicity driving the aggressive enforcement you see in the market today.
Why PFAS pose such a unique threat
The primary reason PFAS are causing concern in the real estate market is their chemical structure. They’re built on a carbon-fluorine bond (one of the strongest in organic chemistry).
- These chemicals don’t break down in the environment — not from sunlight, heat, or microbes, hence why we call them “forever chemicals.” They can show up anywhere.
- They don’t just sit in the soil; they move through water and can accumulate in human (and animal) bodies over time. A small leak today could become a massive, multi-property plume in the future.
The NRDC has identified a growing pile of medical evidence linking even low-level exposure to:
- Immune suppression: PFAS can decrease vaccine effectiveness and lower the body’s ability to fight infections.
- Hormone disruption: PFAS are endocrine disruptors that have been linked to thyroid disease and reproductive issues.
- Cancer risks: Long-term exposure is associated with increased risks of testicular and kidney cancer.
- Developmental issues: Lower birth weights and developmental delays in children have prompted those disclosure mandates for residential-over-retail owners.
Here’s where the state stands with PFAS in 2026.
- Firefighting foam
One of the most immediate compliance requirements involves Class B firefighting foams. As of January 8, 2026, New Jersey has banned the sale and use of PFAS-containing foams, specifically Aqueous Film Forming Foam (AFFF).
The grace period
If your building has an automated fire suppression system — standard in high-hazard warehouses, chemical storage, or old hangars — you have a reprieve until January 8, 2028. However, to qualify for this two-year extension, you must:
- Report your system to the Department of Community Affairs (DCA).
- Ensure 110% containment by proving that if the system triggers, every drop of foam and contaminated water can be contained on-site.
- Follow strict disposal regulations. You must dispose of all discharged or removed foam through the NJDEP’s take-back and disposal programs, which are currently scaling up with a $250,000 state appropriation.
2. Product bans: carpets, furniture, and intentionally added PFAS
The new law examines what’s in the soil and what showrooms display. Starting in 2026, New Jersey has banned the sale or distribution of several product categories if they contain intentionally added PFAS.
- Carpets and upholstery: If you’re a retail landlord or office owner doing a tenant fit-out, all materials must be PFAS-free.
- Fabric treatments: Stain-resistant coatings containing PFAS, a key component of high-traffic commercial spaces for decades, are illegal to use.
- The “technically unavoidable” clause: The law allows for “technically unavoidable trace quantities” (impurities), but the burden of proof is shifting toward manufacturers and, by extension, property owners who allow these products into their space.
3. Mandatory landlord disclosures
As of January 2026, SB S1222 has introduced a transparency requirement for landlords. If a public water system reports an exceedance of maximum contaminant level (MCL) — which, in NJ, is a thin 13 parts per trillion (ppt) for PFOS and 14 ppt for PFOA — you’re on the clock.
- 72-hour rule: Landlords must notify tenants within three business days of receiving a PFAS exceedance notice.
- Entrance postings: You must post the notice in a prominent location at each entrance of the rental premises.
- Prospective tenants: You’re legally required to provide the most recent PFAS test results to any potential tenant before they sign a lease.
4. CERCLA and the Spill Act
In late 2024, the EPA designated PFOA and PFOS as hazardous substances under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA, commonly known as Superfund). New Jersey followed suit under the Spill Compensation and Control Act. In 2026, we’re seeing the full impact of these designations.
The innocent purchaser shield is thinning
To qualify as an innocent purchaser in NJ, you must perform an All Appropriate Inquiry (AAI). In 2026, if your Phase I Environmental Site Assessment (ESA) doesn’t specifically investigate PFAS history in detail, you lose that protection.
- Legacy risks: Did the property ever host a dry cleaner? Car wash? Chrome plater? If so, NJDEP now assumes PFAS is present until you prove it isn’t.
Reopening closed sites
The NJDEP’s order of magnitude rules mean that if a new standard (like the 2026 PFAS limit) is more than ten times stricter than the old one, the state can reopen your closed case. Even if you have a Response Action Outcome (RAO) from 2015, if NJDEP discovers a PFAS plume under your clean site today, it will send you back into the remediation cycle.
5. Industrial tenants and wastewater scrutiny
Own industrial or manufacturing properties? Know that the 2026 regulations have moved to the effluent side of the house. The NJDEP now sets permit limit guidelines for PFAS in wastewater.
If your tenant has a New Jersey Pollutant Discharge Elimination System (NJPDES) permit, they face new monitoring and pretreatment requirements. Publicly owned treatment works (POTWs) — local sewage plants — have begun to refuse high-PFAS wastewater (or don’t remove PFAS at all) because they can’t process it. The problem? Your industrial tenants have fewer places to send their discharge.
6. Mandatory reporting
New Jersey’s 2026 Notice of Subsequent Change (NOSC) rules have clarified a reality for sellers. If you discover PFAS contamination during a confidential due diligence period, you may have a mandatory duty to report that discharge to the NJDEP immediately, regardless of whether the deal closes.
Licensed site remediation professionals (LSRPs) in NJ have an ethical and legal obligation to report immediate environmental concerns (IECs). In 2026, a high PFAS reading in a potable well is almost always an IEC.
Operational and financial risks
The costs associated with PFAS in 2026 are huge.
| Risk factor | 2026 Reality |
| Remediation cost | $100K+ for simple GAC filtration; millions for dig & haul of soil. |
| Insurance | Standard GL and pollution policies almost universally contain Total PFAS exclusions. |
| Valuation | PFAS-impacted properties are seeing 20-40% “stigma” discounts in the NJ CRE market. |
| Closing time | Environmental due diligence for PFAS can add 60-90 days to a standard closing. |
Future-proof your assets
The NJ regulatory machine is fully PFAS-aware. As we move through 2026, the risk will shift from manufacturer to title holder. If you haven’t conducted a PFAS audit of your portfolio, checking fire suppression systems, auditing tenant chemical usage, and reviewing Phase I history, you’re flying blind in a potentially dangerous storm.
2026 PFAS Due Diligence Checklist
| Step | Action Item | Critical Deadline/Threshold |
| AFF Audit | Identify any Class B firefighting foam in your storage or suppression systems. | Banned as of 1/8/2026 |
| Lease review | Update environmental indemnity clauses to specifically mention PFAS and emerging contaminants. | Immediate |
| Water testing | If on a private well, test for PFOA, PFOS, and PFNA under the Private Well Testing Act (PWTA). | MCL: 13-14 ppt. |
| Phase I ESA | Ensure your consultant uses the updated ASTM E1527-21 standard with a PFAS scope. | Before any 2026 transaction. |
| Tenant audit | Survey industrial tenants for use of hazardous substances as now defined by NJDEP. | Immediate |
Are you a commercial real estate investor or seeking a specific property to meet your company’s needs? We invite you to talk to the professionals at CREA United, an organization of CRE professionals from over 90 firms representing all disciplines within the CRE industry, from brokers to subcontractors, financial services to security systems, interior designers to architects, movers to IT, and more.
