The Port of Long Beach is one of the busiest ports in the United States, acting as a gateway for both imports and exports, facilitating trade and generating jobs in the region. The port contributes greatly to the economic success of Southern California, accounting for over $200 billion in trade, which includes over 6 million containers annually. However, the high volume of goods requires a significant amount of infrastructure and support services. One such facility that has a direct impact on the port’s functionality is industrial real estate. There is a direct relationship between the Port of Long Beach and the industrial real estate market’s rental rates, specifically in the surrounding regions of Signal Hill and Long Beach.
The Port of Long Beach is one of the largest employment centers in Southern California, with over 300,000 jobs relating to port operations and cargo transportation. This presents a significant demand for industrial real estate space, primarily as storage and distribution centers. The area surrounding the port, including Signal Hill and Long Beach, has a high concentration of such industrial buildings. These buildings range in size from small warehouses to large distribution centers, with varying rental rates depending on location and facility specifications.
The demand for industrial real estate has a direct impact on rental rates. High demand in combination with limited supply can result in a higher rental rate, especially in areas that are closer to the port or have better access points. The increase in rental rates is driven by the need for businesses to maintain proximity to the port and, thus, remain competitive in the market. With an increase in rental rates, there is also a potential for the development of newer and more modern industrial real estate facilities, which can attract higher-end businesses that can afford higher rental rates.
On the other hand, the port’s impact can also be felt in areas that are further out from the port, such as Signal Hill. The city of Signal Hill is centrally located between the port and other major industrial areas, such as Los Angeles. This accessibility to various locations and a diverse range of businesses can lead to more affordable rental rates in the area. However, since many companies require proximity to the port, demand for industrial space in Signal Hill remains significant, and rental rates in the area are, therefore, still high.
Long Beach also includes several waterfront industrial areas, such as Terminal Island, which directly feeds into the port. These areas have some of the highest rental rates in the region due to their proximity to the port and direct access to it. However, areas further from the immediate port have fewer rental opportunities to offer, resulting in lower rental rates.
The Port of Long Beach has a significant impact on the industrial real estate market in the surrounding areas. The demand created by this port also affects rental rates, with areas closer to the port charging higher rental rates based on location and demand. As competition in the market increases, newer facilities will be developed to cater to businesses looking for modern and high-end industrial real estate space, which can further increase rental rates. The port is a significant factor in the economic growth of Southern California, and as it continues to grow and change, we can expect to see a continuous impact on the industrial real estate market in Signal Hill and Long Beach.
For assistance with your industrial commercial estate requirements, please contact CCRA, Inc. @ (562) 424-7974!