In 2006, the combined cargo volume of the Los Angeles and Long Beach ports was a record 15.8 million 20-foot equivalent units, compared with second-place New York's 5.1 million TEUs. The trade volume through the Los Angeles and Long Beach ports ranks first in the nation and fifth globally and is projected to increase by an average annual rate of 8.5 percent over the next decade. The warehousing, trans-loading and distribution of these goods requires a significant amount of warehouse space in proximity to the ports. Because Los Angeles is predominantly built out, the Inland Empire, consisting of San Bernardino and Riverside counties, has become the ideal location for distribution and logistics warehouses. Located 50 miles inland, the Inland Empire can accommodate warehouse space with its available land parcels, transportation infrastructure and large blue-collar labor force. Over the past decade, the growth in trade volume has shaped the industrial real estate landscape in the Inland Empire and will continue to shape it as international trade increases.
January 25, 2008