The front-loading of spring merchandise in November and December to avoid threatened tariffs on Chinese imports has made the Los Angeles-Long Beach port complex a virtual warehouse, highlighting how industrial space pressures will only rise this year.
The recent development raises the concern that even though new distribution capacity nationwide in 2018 exceeded absorption for the first time in eight years, logistics space in the two largest gateways of Los Angeles-Long Beach and New York-New Jersey may be operating now at maximum utilization. Two developments are driving this trend, increasing imports and double-digit growth in online shopping.
