In 2006, the combined Los Angeles and Long Beach Ports cargo volume was a record 15.8 million twenty-foot equivalent units (TEUs), compared to second place New York’s 5.1 million TEUs. The trade volume through the 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 require a significant amount of warehouse space in close 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.