Trade Shifts Push Inland
Regional trade shifts are increasingly routing warehouse demand toward Inland markets for cheaper land and lower congestion, changing tenant location economics across the LA basin. That movement is creating more competition in Inland submarkets for large, well‑located sites. (x.com)
Combined loaded import TEUs at the Ports of Los Angeles and Long Beach fell to 831,412 in January, a 13.0% year‑over‑year decline that has weakened gateway throughput and prompted occupiers to rethink port‑proximate footprints. (www2.naicapital.com) Cushman & Wakefield’s analysis shows port‑proximate markets captured just 19% of U.S. industrial net absorption in 2025 — the lowest share in 15 years — indicating a measurable diversion of large distribution activity toward inland hubs. (dcvelocity.com) CBRE data show the Inland Empire accounted for 14 of the country’s top 100 industrial leases in 2025, totaling 11.8 million square feet, concentrating large‑format demand in Riverside and San Bernardino counties. (cbre.com) Price signals are shifting tenant math: Greater Los Angeles average asking rent was $1.22 NNN per square foot in Q4 2025 while the Inland Empire stabilized near $1.00 NNN per square foot, compressing coast‑to‑inland cost differentials that drive site decisions. (cbre.com) Deliveries added roughly 4.3 million square feet in Q4 2025 and availability in the Inland Empire rose into the double digits (about 11.7%), yet renewed big‑box touring and large renewals mean large, well‑located sites and land assemblages are drawing multiple bidders. (colliers.com) Prologis forecasts warehouse demand in key coastal gateways will rebound to a three‑year high in 2026, and Cushman & Wakefield warns occupiers are actively redesigning networks around lower‑cost inland hubs — a combination that will keep competitive pressure on Inland submarkets through 2026. (indexbox.io)
