Do Industrial Preservation Policies Protect and Promote Urban Industrial Activity?

Problem, research strategy, and findings: In recent years, several major cities have implemented industrial preservation policies to attract and retain industrial uses after facing acute pressures to rezone often centrally located industrial land to “higher and better” uses. Minimal research to date, however, has examined how effective industrial preservation policies have been at protecting and promoting urban industrial activity. In this study, we ask how New York City’s (NY) Industrial Business Zone (IBZ) program affected four measures of urban industrial activity—industrial business registrations, industrial employment, industrial building permits, and industrial land—in IBZs in New York City. We benchmark our results against a comparison group established using propensity score matching. We find that the IBZ program had a significant impact on retaining industrial land in IBZs but that it did not have a significant impact on promoting new industrial business registrations, employment, or building permits in IBZs.

Takeaway for practice: Our research provides evidence of how various measures of urban industrial activity change following the designation of an industrial preservation policy. This research suggests that industrial preservation policies can be an effective tool to stem urban industrial land losses in cities facing land use conversion pressures, but that such policies need to create more robust linkages with economic development planning objectives. In the interest of continuing to protect middle-class industrial job opportunities in central cities, planners and practitioners should consider how to strengthen ties between physical land use planning and economic development planning.