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Port activity underscores the health of the industrial real estate market

  • ​Ports of Los Angeles and Long Beach are strong leading indicators for industrial demand in Los Angeles. Increased port volume coincides with increased demand for warehouse space.  As a result of port traffic reaching new highs, industrial vacancy has hovered at approximately 1.0 percent in the last three years in the LA Basin.
  • Import activity outpaces export activity by nearly 3 to 1 at both ports combined, and in the last year import volume has increased by 16.7 percent, compared with just 7.8 percent growth in exports. E-commerce and the LA Basin’s important role in the supply chain are both contributing to this growth.
  • The Port of Los Angeles is the most active port in North America based on container traffic at 8.9 million TEUs, and it also has the highest average asking rent at over $10 NNN. Growing consumer confidence, operational efficiencies and the rise of e-commerce have translated into heightened imports at local seaports, and is resulting in tighter conditions within LA’s industrial market. ​
  • For more information on port activity, check out JLL’s 2017 PAGI Seaport Outlook.​

Source: JLL Research, Port of Long Beach, Port of Los Angeles

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