The top trade container port in the United States has long belonged to the West Coast but, for the past three months, has shifted eastward.
At the Port of Los Angeles, meanwhile, total container counts were 678,429 last month, a 25% decrease from October 2021. Long Beach handled 658,428 TEUs in October, a 16.6% decrease from the same month a year prior. Newmark found the 12-month trailing absorption for industrial space in Los Angeles was nearly 4.7 million square feet in Q3 2019 and -2.2 million square feet in Q3 2020 before shooting up to 13.8 million in Q3 2021. In Q3 2021, absorption was about 3.7 million square feet.
In fact, quarterly leasing for industrial space in Savannah this year is more than 2.5 times the trailing three-year pre-pandemic average, DeNight said. In particular, occupiers are considering markets where they can find lower rents, availability, new or modern inventory, and supply-chain resiliency, DeNight added.
"It matters where their suppliers are, where the companies is based, where the outbound logistics are going," he continued."But I would say, on average, there’s more interest in building that diversity for the sake of resilience.
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