Proposed warehouse projects in California will need to meet new, stricter siting and design requirements under a newly approved state law.
Gov. Gavin Newsom recently signed Assembly Bill 98, which will apply to new industrial warehouse projects beginning in 2026. The measure, in part, requires local governments to only approve new warehouse buildings or expansion projects if they are located hundreds of feet from “sensitive sites,” which would include homes, healthcare facilities and schools, among others.
It would also stipulate that the projects be on major thoroughfares or local roads in commercial areas.
In addition, the law takes steps to ensure that new projects do not exacerbate the state’s ongoing housing shortage. Developers would be required to provide 12 months’ rent to any tenants displaced by their projects, and new affordable housing units would need to be built to match any demolished for warehouse construction.
Proponents of the measure contend that it will improve health outcomes near major warehouse projects, but the bill faced fierce opposition from multiple groups, according to the Los Angeles Times — including environmentalists concerned about truck loading bay requirements, and municipalities worried about what they say could be hundreds of millions in one-time costs.