Brief | Creating Resilience
San Pedro Bay port complex: the driver of the Southern California industrial market
Greater Los Angeles, Orange County, & Inland Empire
May 7, 2024 4 Minute Read
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- In the first quarter of 2024, the Ports of Los Angeles and Long Beach, known as the San Pedro Bay port complex, accounted for over 30% of the Twenty-foot Equivalent Units (TEUs) in the United States.
- From 2007 to 2024, total TEU activity historically correlated to 15-28% of total leased square footage annually in the Greater Los Angeles, Orange County, and Inland Empire (GLA-OC-IE) region. These imports and exports are anticipated to continue influencing the region’s industrial leasing market.
- Third-party logistics (3PLs) throughout GLA and IE have excess capacity in existing warehouses, left over from the pandemic surge. While that space will need to be absorbed before witnessing tighter vacancy rates and rising rents, the long-term fundamentals remain sound and optimistic.
- Despite short-term economic uncertainties, the San Pedro Bay port complex ensures that the GLA-OC-IE region's industrial market continues to be a leading real estate hub in the U.S.