East West Commercial Real Estate

Export Advantage

The decline in global trade hit the nation’s industrial markets hard, but not equally hard, according to a Colliers International report. During the global slowdown of the past two years, vacancy rates in port city industrial markets climbed faster than in the overall industrial market. This points up the clear correlation between trade and industrial demand. For every 1 percent change in port TEUs, the standard measure of shipping trade, industrial demand changes 0.33 percent. So the recent 15 percent decrease in TEUs resulted in a 5 percent decline in port city industrial occupancy. But not all port cities experienced the decline equally. In fact, those focusing on exports fared better than those concentrating on imports, as exports to foreign countries remained fairly stable throughout the recession.

Increased import and export business as we come of the recession will benefit Long Beach and Los Angeles County, but also the Inland Empire where most of the goods are warehoused. This is good news for commercial property owners in Los Angeles and San Bernardino. Los Angeles Apartments for Sale, Orange County Apartments for Sale, and San Bernardino Apartments for Sale will benefit.

Michael Duhs, Managing Broker

East West Commercial

(949) 939-8352

Michael.Duhs@EastWestCommercial.com