While the U.S. port industrial markets have enjoyed robust performance, recent data indicates a slowdown. Major port markets, such as those in Southern California, have experienced significant rent declines after a period of unprecedented growth. For instance, the largest U.S. port industrial markets recorded a negative absorption of 436,000 square feet in Q1 2024, a stark contrast to the 13.3 million square feet of positive absorption in the same quarter of the previous year. Vacancy rates have risen to 5.5%, aligning closely with the national average of 5.7%.

Despite the dip in demand for industrial space, container volumes at U.S. ports remain high. In Q1 2024, U.S. ports handled 11.4 million TEUs, the highest volume since Q3 2022. This discrepancy can be attributed to improved inventory management by tenants, allowing them to operate more efficiently and reduce space requirements amid high rent environments.