Trailer parking near the ports of Los Angeles and Port of Long Beach is known for its limited availability, a situation that is likely to worsen in the future. In response to this ongoing challenge, some real estate developers are adopting innovative approaches.
Securing adequate facilities for truck parking and shipping container storage is a significant challenge across the United States, but it’s particularly acute in the Greater Los Angeles area due to various factors.
The port complexes are surrounded by boundaries from residential neighborhoods or wetlands, making additional construction not feasible. Furthermore, a Harbor Gateway Community Plan, currently under review by the Los Angeles Department of City Planning, proposes restrictions that would limit industrial outdoor storage to 25% or less within the designated area.
The designated area covered by the Harbor Gateway Community Plan spans approximately 3,229 acres, connecting the harbor with the San Pedro, Wilmington, and Harbor City communities to the main area of Los Angeles.
While the city aims to promote improved transit, pedestrian development, park facilities, and clean industrial uses, the new zoning plan, coupled with stricter emission regulations from the EPA and increased activity at the twin ports, is expected to constrain industrial storage options further.
Carriers seeking to store freight-related assets, such as empty chassis or containers, often seek parking off port property to avoid costly daily rate fees, leading to heightened demand for off-site facilities. Thomas Wason, an enterprise trucking carrier expert at FreightWaves, highlights that carriers frequently opt for leased spots to manage costs effectively.
In response to this growing demand, some developers and real estate managers are repurposing old business sites into trailer storage facilities.
CBRE is involved in representing such developing sites, with one example being Atlas Capital Group’s project. They are demolishing an aging office facility on five acres and replacing it with a concrete slab capable of accommodating 193 trailers. The converted property on South Vermont Avenue in Los Angeles is set to be completed by June.
CBRE Senior Vice President James Hooks, overseeing the project, mentions that the focus of the yard will be on empty containers on chassis, catering to those seeking to avoid storage penalties at the ports.
Atlas intends to create an aesthetically pleasing environment, blending utility with charm to harmonize with the surrounding neighborhood. The fenced site will feature a 14-foot concrete wall covered with stucco to conceal containers from view.
Hooks suggests that other industrial sites can also enhance their surroundings, potentially incorporating elements like living walls or ivy coverings. Additionally, processing trucks within the facility, rather than at the security gate, is expected to reduce congestion and community disruptions.
Source: FreightWaves
