Our latest report, the Industrial U.S. Seaport Outlook, presents an engaging, visual representation of the key facts about the major seaports and perspective on the trends impacting these ports and the surrounding industrial real estate markets. Learn more about one of these seaports: the Port of Los Angeles.
“The Port of Los Angeles is the nation’s top container port and the gateway to the United States for international commerce — the port handles 41% of all cargo entering into the country. This thriving seaport not only sustains its competitive edge with record-setting cargo operations, but it is also known for ground-breaking environmental initiatives and progressive security measures. The port remains one of the top economical demand drivers for California and the surrounding industrial markets, which lead the nation in activity, investor demand, rent growth and new development.” — John Hollingsworth, Executive Managing Director | Los Angeles, CA
The Port of Los Angeles has one of the deepest harbors in the U.S. at 53 feet, deep enough to handle vessels capable of holding up to 15,000 TEUs — a significant advantage over ports along the East Coast. The port contains nine container terminals, 15 marinas and 30 berths equipped with Alternative Maritime Power®. There are 86 total cranes at the port, with 72 able to handle Post-Panamax vessels (6,000 TEUs).
A majority of the total containerized volume coming through the Port of Los Angeles is from imports. At the end of 2016, 71.4% of loaded containers handled at the port were from imports. Top trading partner countries in 2016 were: China/Hong Kong, Japan, Vietnam, South Korea and Taiwan. Furniture, auto parts and apparel are the top imported items while paper, animal feed and scrap metal were the top exports in 2016.
There are two Class I rail operators at the Port of Los Angeles: Union Pacific and BNSF. The Intermodal Container Transfer Facility (ICTF), operated by Union Pacific, is a large near-dock rail yard located approximately five miles from the Port of Los Angeles. Since opening in 1986, the ICTF has greatly enhanced transcontinental rail service as well as the relay of marine cargo containers between both the ports of Los Angeles and Long Beach and major rail yards near downtown Los Angeles.
REAL ESTATE IMPACT:
The largest industrial combined market in the U.S. surrounds the Port of Los Angeles. Greater Los Angeles — which includes Los Angeles County, Orange County and the Inland Empire — totaled 1.6 billion square feet of existing industrial inventory at the end of 2016. Demand for industrial real estate in all markets is robust, with the surrounding ports remaining one of the top drivers.
In 2016, Los Angeles County posted the lowest industrial vacancy rate in the U.S. at 1.3%. Located approximately 50 miles east of the Port of Los Angeles, the Inland Empire has become one of the most dynamic markets in the U.S., constantly finishing in the top five in terms of U.S. activity and development. The Inland Empire has also become an e-commerce hub for the western U.S. with Amazon.com alone currently occupying more than 7 million square feet — its largest footprint in the U.S.
To learn more, explore the Industrial U.S. Seaport Outlook.