West Coast ports rebound; however, industrial leasing paints a different picture

West Coast ports saw an 18.2% increase in TEU(Twenty-Foot Equivalent Units) volumes in 2024, driven by strong U.S. consumer spending and retailers stocking up to meet demand. Many importers rushed shipments in late 2024 and early 2025 to get ahead of looming tariffs. However, an increasing share of inbound goods is being transported directly eastward via rail, limiting immediate leasing demand in key distribution hubs.

The Inland Empire entered 2024 with strong leasing momentum, fueled by Amazon’s expansions and global 3PL growth. However, elevated rents and economic uncertainty have slowed activity as businesses reassess logistics strategies amid shifting trade policies, leading to a slowdown in big-box industrial leasing.

Leasing activity has improved, particularly in the City of Industry and nearby submarkets, as tenants benefit from lower lease rates and favorable drayage costs compared to the Inland Empire East. Proximity to the ports makes industrial spaces in the area highly desirable, driving steady quarter-over-quarter growth in Los Angeles industrial leasing.