Why it May Be hard to Find Warehousing in Los Angeles

Low angle at group of workers in warehouse doing stock review and storage management

Los Angeles is more than just Hollywood and celebrities, though– it’s also a major port and transportation hub. It’s the kind of place companies want to be because so many other companies are located there– it’s a major place to do business not only in the USA but in the world, too.

Because Los Angeles is popular and bustling when it comes to business and trade, and it’s “the place to be,” it can be hard to find warehousing there.

It comes down to supply and demand, doesn’t it? Demand is high and supply is low. A lot of companies want warehouse space in L.A., but there’s not enough available/affordable warehouse space to meet the demand(s). And there you have the problem…

Trends in Los Angeles Warehousing

Why did Los Angeles-area warehouse prices skyrocket in recent times? Businesses are looking to fulfill their online orders since so many consumers are shopping online. And L.A. is a hub for many businesses that sell to consumers; There has been an increased demand for warehouse space. However, there’s low to no vacancy! Warehouse owners can charge high rates because they can– and someone will pay. Meanwhile, in California warehouses have to pay exorbitant taxes, so they raise their rates to cover those additional costs. The state has also demanded warehouses be compliant to their WAIRE Program, which aims to reduce emissions (to be better for the environment)– another additional cost of doing business in L.A. 

Can you still find affordably priced, well-run warehouse facilities in Los Angeles? Yes. Call Affiliated Warehouse Companies at 888-865-1150 for more information.