New York City is proposing new zoning regulations that could reshape how last-mile delivery hubs are developed, particularly in areas close to residential neighborhoods. The proposed amendment would require a special permit for any new parcel delivery facility larger than 50,000 square feet in manufacturing, mixed-use, or commercial zoning districts that are near housing.
The plan, announced by the Department of City Planning (DCP), aims to address concerns about truck traffic, air quality, and equity in underserved communities. According to the proposal, the special permit would be triggered unless the facility is located more than 500 feet from a residential district, is under 50,000 square feet, or includes certain EV charging infrastructure. Facilities on Port Authority or USPS land are exempt.
“Warehouses—especially the large operations that have proliferated with the growth of e-commerce—generate significant truck traffic, with meaningful negative impacts for air quality and health,” said Rohit T. Aggarwala, the city’s Chief Climate Officer, in testimony earlier this year.
The proposal would impact a key segment of the supply chain: last-mile logistics. These facilities—used to sort and reload packages for final delivery—have become essential to faster e-commerce fulfillment. But as they multiply across the city, especially in lower-income areas, they’ve drawn criticism for contributing to pollution and congestion.
To gain permit approval, developers would need to address how their project affects air quality, greenhouse gas emissions, traffic, stormwater runoff, and the surrounding community. A public review process will include feedback from community boards, borough presidents, the City Council, and the City Planning Commission.
If adopted, the new rules could force logistics providers to rethink their approach to warehouse development in New York City, potentially leading to more investment in smaller hubs, micro-fulfillment, and sustainable last-mile delivery methods.
Â
