Trade volume fell sharply at Southern California’s twin ports of Los Angeles and Long Beach in October, as measured by loaded 20-foot equivalent unit containers, known as TEUs.
For the month, trade volume was 12.4% lower than a year ago, continuing the decline in shipping activity seen since the end of 2018, while the less-volatile, six-month trailing average declined by 5.2% year-over-year.
October has traditionally represented the second-strongest month for trade volume, and the steep decline in the six-month trailing average shows that retailers have been hesitant to accumulate goods from abroad as they prepare for the upcoming holidays.
Transportation and warehousing employment growth has also slowed from earlier in the cycle across Los Angeles and the Inland Empire. September payrolls in the sector grew by 2.5% year-over-year in the combined regions, compared to 6.8% per year from 2014 to 2018, according to the California Employment Development Department.
While ongoing trade negotiations between the United States and the country’s largest trading partners could be dampening trade flows and hiring, the trade war has yet to demonstrate major ill effects on industrial leasing.
Vacancies in the Inland Empire are 30 basis points lower than they were a year ago, despite 20 million square feet of new space delivering. Meanwhile, industrial vacancies in Los Angeles remain extremely low at 2.6%.
Among the latest leases from the logistics sector in the Inland Empire, Cardinal Health recently signed on to take over 1 million square feet in Riverside next year and Bee Imagine leased 242,000 square feet in Fontana. And in the Los Angeles market, WePackItAll will be taking 157,800 square feet in Irwindale and Plenty Unlimited will be taking 94,900 square feet in Compton.
Industrial rents are also up 6.9% in the Inland Empire and 4.2% in Los Angeles from a year ago.
While ongoing trade negotiations between the United States and the country’s largest trading partners could be dampening trade flows and hiring, the trade war has yet to demonstrate major ill effects on industrial leasing.
Vacancies in the Inland Empire are 30 basis points lower than they were a year ago, despite 20 million square feet of new space delivering. Meanwhile, industrial vacancies in Los Angeles remain extremely low at 2.6%.
Among the latest leases from the logistics sector in the Inland Empire, Cardinal Health recently signed on to take over 1 million square feet in Riverside next year and Bee Imagine leased 242,000 square feet in Fontana. And in the Los Angeles market, WePackItAll will be taking 157,800 square feet in Irwindale and Plenty Unlimited will be taking 94,900 square feet in Compton.
Industrial rents are also up 6.9% in the Inland Empire and 4.2% in Los Angeles from a year ago.
Source: https://product.costar.com/home/news/508005790?market=20
