Trailer parking near the ports of Los Angeles and Long Beach is notoriously tight and likely to get worse. Hoping to win over clients struggling with this issue, some real estate developers are taking a new approach.
Finding suitable facilities to park trucks and store shipping containers is difficult throughout the United States, but the greater Los Angeles area presents an even greater challenge to the logistics industry.
Harbor complexes are enclosed on all sides by residential neighborhoods or wetlands that cannot be built upon.
In addition, a Harbor Gateway Community Plan under consideration by the Los Angeles Department of City Planning would allow only 25 percent or less of outdoor industrial storage within the designated area.
The plan area is approximately 3,229 acres that connects the port and communities of San Pedro, Wilmington and Harbor City to the greater Los Angeles area. The city is promoting improved transit, greater pedestrian development, park facilities and clean industrial uses that “will contribute to a healthy and active environment.”
But this new zoning plan, along with new emissions rules from the Environmental Protection Agency and increased activity at the Twin Ports, will likely further curtail industrial storage.
Carriers wishing to store any cargo-related asset, such as empty chassis or containers, typically look to off-port parking to avoid costly daily charges, increasing demand for these facilities.
Thomas Wasson, trucking expert at FreightWaves, says carriers often look to their own leased locations to better manage costs.
Some developers and property managers are taking the opportunity to convert old business spaces into new trailer storage facilities.
CBRE represents a growing site like this, hoping to attract carriers looking for spots to lease as parking becomes more limited. Atlas Capital Group is demolishing an old office facility on 5 acres and replacing it with a striated concrete slab that will house 193 trailers. The converted property on South Vermont Avenue in Los Angeles will be ready by June, according to CBRE.
CBRE Senior Vice President James Hooks, who is brokering the site, told FreightWaves that the yard will focus on empty containers on chassis for those looking to avoid port storage penalties. Inland Empire storage yards are located farther from ports and are primarily used for containers moving between countries.
Atlas intends to create an aesthetically pleasing environment for the surrounding area, balancing utility with charm to blend in with the neighborhood.
The fenced area is fronted by a 14-foot concrete wall covered in stucco to hide the containers from passers-by.
Hooks explained that other industrial spaces can also be more creative with the environment, using living walls or lining them with ivy. He also noted that being able to process trucks inside the facility, rather than at the security gate, will reduce congestion and community disruption.