Foreign trade and foreign investors are helping fuel an increase in land costs in the industrial area serving the harbors and Los Angeles International Airport.
This is the finding of a study made by the Goodglick Co., Beverly Hills-based commercial and industrial broker.
Five years ago, land costs in the industrial areas of Carson, Compton and Dominguez were in the range of $5 to $7 a square foot. Today, the study shows, the range is $12 to $14 a square foot.
The area serves warehousing and distribution companies, manufacturers and assemblers, garment makers and other firms.
Daniel Merritt, a senior consultant at the Goodglick Co., said the the aerospace and electronics industry is moving into the South Bay area to escape the $25 to $30 a square foot prices near International Airport.
Merritt doesn't believe that defense cutbacks, should they occur, would necessarily affect the Carson and Dominguez area.
"We have TRW, Hughes, McDonnell Douglas, that's true," he said.But the main thrust is the warehousing, distribution and trucking business. The Koreans and Taiwanese are coming in very strongly. We're also starting to see some Chinese export and import activity."