Long Beach is home to one of the most active and strategically important industrial real estate markets in the United States. The Port of Long Beach, the second busiest container port in the nation, processed a record 9.9 million twenty-foot equivalent units (TEUs) in 2025, driving intense demand for warehouses, distribution centers, cold storage facilities, and logistics infrastructure throughout the city and the broader I-710 corridor. Add to that Long Beach's surging aerospace sector at Douglas Park, where companies like Anduril Industries, Relativity Space, and SpinLaunch are building next-generation manufacturing and R&D facilities, and the result is an industrial market with multiple demand engines and strong long-term fundamentals.
Clear House Lending provides industrial property financing throughout Long Beach and the South Bay, from conventional commercial mortgages and SBA loans to bridge financing and construction loans. This guide covers the industrial lending landscape, current rates, submarket analysis, and what you need to know to finance industrial real estate in Long Beach in 2026.
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Why Is Long Beach One of the Top Industrial Real Estate Markets in the Country?
Long Beach's industrial market is defined by a single, powerful fact: the city sits at the gateway of American trade. The Port of Long Beach, together with the adjacent Port of Los Angeles, forms the San Pedro Bay Port Complex, which handles approximately 40% of all containerized imports entering the United States. In 2025, the Port of Long Beach alone processed roughly 9.9 million TEUs, a record year fueled in part by importers frontloading cargo ahead of tariff changes during the first half of the year.
This trade infrastructure creates an enormous and persistent demand for industrial real estate. Every container that moves through the port needs a warehouse for storage, a distribution center for sorting and shipping, a truck terminal for last-mile delivery, and often a cold storage or specialized handling facility. The I-710 freeway, which runs north from the port through Long Beach and into the greater LA basin, serves as the primary goods movement corridor and anchors the highest-demand industrial submarket in the region.
Beyond logistics, Long Beach's industrial sector has been transformed by the aerospace renaissance branded as "Space Beach." Douglas Park, the 4-million-plus-square-foot business park built on the former Douglas Aircraft Company manufacturing site, hosts nearly 30 companies. Anduril Industries is constructing a 1.1 million square foot drone R&D campus expected to support approximately 5,500 jobs. Nikon opened a 90,000 square foot Advanced Manufacturing Technology Center in 2024 to support aerospace, aviation, and defense production. These tenants represent a premium tier of industrial demand that commands higher rents and longer lease terms than standard warehouse space.
What Types of Industrial Loans Are Available in Long Beach?
Long Beach industrial borrowers have access to a comprehensive range of financing options designed to match different property types, investment strategies, and borrower profiles.
Conventional Commercial Mortgages are the standard financing tool for stabilized industrial properties with strong occupancy and predictable cash flow. These loans offer fixed rates for 5, 7, or 10 years with 25 to 30 year amortization. They work well for single-tenant warehouses, multi-tenant industrial parks, and distribution facilities with established lease histories.
SBA Loans serve owner-occupants who operate their business from the property. The SBA 504 program is particularly well suited for Long Beach industrial properties, offering up to 90% financing with below-market fixed rates for manufacturers, logistics companies, and aerospace suppliers who own their facilities. The SBA 7(a) program provides flexible terms for smaller acquisitions.
Bridge Loans provide short-term capital for acquisitions where the property needs repositioning, tenant turnover, or renovation before qualifying for permanent financing. In Long Beach's active industrial market, bridge financing allows investors to close quickly on competitive deals and execute their value-add strategy before refinancing into a permanent loan.
DSCR Loans evaluate the property's rental income rather than the borrower's personal income. DSCR programs work well for industrial investors with multiple properties who want to qualify based on the cash flow of the specific asset. Use our DSCR calculator to test whether your target property meets minimum coverage requirements.
Construction Loans fund ground-up industrial development and major renovations. With land scarce and rents healthy, build-to-suit projects for logistics and aerospace tenants are an active segment of Long Beach's industrial market.
Hard Money Loans offer speed and flexibility for time-sensitive acquisitions, auction purchases, or properties with title or condition issues that prevent conventional financing. These asset-based loans can close in days.
What Are Current Industrial Loan Rates in Long Beach?
As of February 2026, industrial loan rates in Long Beach reflect both the broader commercial lending environment and the strong fundamentals of the local industrial market.
Conventional commercial mortgages for stabilized industrial properties range from approximately 5.18% to 7.00%, with the best rates available for well-located, single-tenant properties with long-term credit leases. Port-adjacent warehouses with national logistics tenants on 5 to 10 year leases typically qualify for the most competitive terms.
SBA 504 loans offer fixed rates starting around 5.64% through the CDC debenture portion, making them an attractive option for manufacturers and logistics companies purchasing their own facilities. SBA 7(a) rates range from 6.50% to 8.00%.
Bridge loans for transitional industrial properties range from 7.50% to 10.50%, reflecting their short-term nature and the repositioning risk involved. Construction loan rates for ground-up industrial development typically fall between 7.00% and 9.50%.
DSCR loans for industrial investment properties range from 6.25% to 8.50%, with pricing driven by the property's net operating income, lease term remaining, and tenant credit quality.
To model your monthly payments, use our commercial mortgage calculator or commercial bridge loan calculator.
Which Long Beach Industrial Submarkets Offer the Best Investment Opportunities?
Long Beach's industrial submarkets are defined by their proximity to the port, freeway access, and tenant mix. Each corridor offers distinct investment characteristics.
The I-710 Corridor is the backbone of Long Beach's logistics real estate market. Running north from the port through the city's industrial core, the I-710 provides direct freight access to the entire Southern California distribution network. Warehouses and distribution centers along this corridor benefit from the shortest possible truck routes to the port, making them the most valuable industrial addresses in the submarket. Average rents sit at approximately $1.00 per square foot NNN, with strong tenant demand from third-party logistics (3PL) providers, freight forwarders, and national retailers.
Douglas Park occupies a unique position as Long Beach's premier aerospace and technology business park. Built on the former Douglas Aircraft Company site near Long Beach Airport, the 4-million-plus-square-foot campus hosts Anduril (1.1 million SF under construction), Relativity Space, SpinLaunch, Wisk, and Nikon Advanced Manufacturing. Industrial space at Douglas Park commands premium rents above the submarket average due to the specialized nature of the tenants and the modern quality of the facilities. Boeing retains several divisions in the area, spending more than $86 million annually in the city.
North Long Beach serves as a transitional industrial zone between the port corridor and the residential neighborhoods to the north. This area offers a mix of older warehouse stock, flex space, and small-bay industrial properties that attract local distributors, auto-related businesses, and small manufacturers. Cap rates tend to be slightly higher than the I-710 corridor, creating value-add opportunities for investors willing to renovate and re-tenant.
The Westside Industrial Area sits closest to the port and hosts a concentration of port-service businesses, container yards, truck terminals, and heavy industrial users. Properties in this submarket benefit from the highest possible proximity to port operations but may face environmental considerations related to the city's industrial and oil industry legacy.
Signal Hill Adjacency provides an interesting micro-market for smaller industrial investors. The enclave of Signal Hill, surrounded by Long Beach, hosts a mix of light industrial, flex, and creative industrial properties. The area's oil industry history has given way to a more diverse tenant base, and its central location provides convenient access to the I-405 and I-710.
How Does the Port of Long Beach Drive Industrial Lending Activity?
The Port of Long Beach is the primary engine of industrial real estate demand and lending activity in the city. Understanding the port's dynamics is essential for any investor or business owner seeking industrial financing in Long Beach.
The port's record 9.9 million TEU volume in 2025 was driven significantly by importers rushing to get ahead of new tariffs, particularly during the first half of the year. Import volumes reached an unprecedented 4.8 million TEUs as businesses stockpiled inventory. While this frontloading effect may moderate in 2026, the port's long-term trajectory remains upward. The Port of Long Beach has announced an ambitious goal to move 20 million TEUs annually by 2050, effectively doubling its current throughput.
To support this growth, the port is investing approximately $1.8 billion in expanding the Pier B rail facility, which will dramatically increase the share of cargo moving by rail rather than truck. This investment benefits industrial properties along both the I-710 corridor and the Alameda Corridor rail line, as improved rail access reduces transportation costs for tenants and increases the value of nearby warehouse and distribution facilities.
For lenders, the port's infrastructure investment and long-term growth plan provide confidence in underwriting industrial properties throughout Long Beach. Properties with long-term leases to credit-worthy logistics tenants are among the easiest industrial assets to finance, often qualifying for the lowest available commercial mortgage rates.
What Should Borrowers Know About Underwriting Industrial Properties in Long Beach?
Underwriting industrial properties in Long Beach requires attention to several market-specific factors beyond standard commercial real estate analysis.
Lease structure is critical. Industrial tenants in Long Beach typically sign NNN (triple net) leases, where the tenant pays property taxes, insurance, and maintenance in addition to base rent. This structure reduces the landlord's operating expense exposure and provides cleaner cash flow for loan qualification. Lenders evaluate both the current lease terms and the creditworthiness of the tenant when sizing the loan.
Environmental due diligence is especially important in Long Beach. The city's history as an oil production center, going back to the Signal Hill oil boom of the 1920s, means that some industrial sites carry legacy contamination risks. Properties near the port may have exposure to petroleum-related contamination or other industrial pollutants. Phase I environmental site assessments are standard requirements for industrial loans, and Phase II testing may be triggered if the Phase I identifies potential concerns.
Building functionality matters for industrial lending. Lenders evaluate clear heights, loading dock configurations, truck court depth, power supply, fire suppression systems, and yard space. Modern logistics tenants increasingly require minimum 32-foot clear heights, cross-dock configurations, and ESFR sprinkler systems. Older buildings that lack these features may require capital improvements to attract or retain quality tenants.
Seismic considerations apply to all industrial properties in Long Beach, given the city's location in an active seismic zone. Tilt-up concrete construction, which is the standard for modern industrial buildings in Southern California, generally performs well in seismic events. Older masonry or unreinforced structures may require retrofit investment.
How Does Long Beach's Industrial Market Compare to Other Southern California Submarkets?
Long Beach's industrial market competes within the broader Greater Los Angeles industrial landscape, the largest in the United States at over 1.74 billion square feet.
The key differentiator for Long Beach is port proximity. While the Inland Empire offers lower rents (approximately $0.85 per square foot NNN) and newer building stock, it sits 60 to 90 miles from the port, adding significant transportation costs and transit time for importers. Long Beach properties on the I-710 corridor can have containers from ship to warehouse within hours, a competitive advantage that commands a rent premium.
Compared to the Mid-Counties and South Bay submarkets, Long Beach offers comparable rents with superior port access. Orange County industrial rents average around $1.20 per square foot NNN, placing a premium on newer buildings and proximity to consumer markets. Central Los Angeles industrial properties command similar or slightly higher rents but face more intense competition and less available inventory.
Availability in Long Beach has risen to approximately 12.3% as recent deliveries enter the market, but occupancy remains healthy at around 91%. Building sales average approximately $252 per square foot with cap rates near 5.9%. These metrics position Long Beach as a middle-ground market: not the cheapest industrial space in Southern California, but one of the best-located for trade-dependent businesses.
Frequently Asked Questions
What is the minimum down payment for an industrial loan in Long Beach?
Down payment requirements vary by loan program. SBA 504 loans allow as little as 10% down for owner-occupied industrial properties, making them the most accessible option for businesses purchasing their facilities. Conventional commercial mortgages require 25% to 35% down. DSCR loans for investment properties typically require 20% to 35%. Bridge loans may require 20% to 35% equity depending on the property condition and repositioning plan. For port-adjacent warehouse properties with strong tenancy, some lenders offer more favorable leverage terms.
How long does it take to close an industrial loan in Long Beach?
Conventional commercial mortgages typically close in 45 to 60 days. SBA loans take 60 to 90 days due to government underwriting requirements. Bridge and hard money loans can close in 7 to 21 days, which is critical in Long Beach's competitive industrial market where desirable port-adjacent properties often attract multiple offers and tight timelines.
Do environmental issues affect industrial lending in Long Beach?
Yes, environmental considerations are a significant factor in Long Beach industrial lending. The city's oil industry legacy and port-related industrial activity mean that Phase I environmental site assessments are standard for all industrial loans. If potential contamination is identified, Phase II testing may be required, and cleanup obligations can affect loan terms, required escrows, or property valuation. Working with environmental consultants familiar with Long Beach's industrial history can help borrowers anticipate and address these issues early in the transaction.
Can I get an SBA loan for a manufacturing facility in Long Beach?
Yes, SBA loans are an excellent option for manufacturers purchasing their facilities in Long Beach. The SBA 504 program provides up to 90% financing with below-market fixed rates for owner-occupied industrial properties, making it popular among aerospace suppliers, food processors, and other manufacturers operating in the city. Long Beach's active aerospace cluster around Douglas Park has driven significant SBA lending activity for manufacturing and R&D facilities.
What cap rates should I expect for industrial properties in Long Beach?
Industrial cap rates in Long Beach currently average approximately 5.5% to 6.5%, depending on property quality, tenant credit, lease term, and location. Port-adjacent warehouses with long-term credit leases to national logistics companies trade at the low end of this range. Older multi-tenant industrial properties in North Long Beach or the Westside may offer higher cap rates of 6.5% to 7.5%, reflecting the value-add opportunity and potentially higher management intensity. Douglas Park properties with aerospace tenants command premium pricing with correspondingly compressed cap rates.
How does the Port of Long Beach expansion affect industrial property values?
The port's $1.8 billion Pier B rail expansion and its stated goal of doubling container throughput to 20 million TEUs by 2050 are significant long-term value drivers for Long Beach industrial real estate. As the port grows, demand for warehouse, distribution, and logistics space in the immediate area will intensify, while available developable land becomes increasingly scarce. This supply-demand dynamic supports long-term rent growth and property appreciation for well-located industrial assets along the I-710 corridor and throughout the South Bay.
Contact Clear House Lending today to discuss financing options for your Long Beach industrial property. Our team understands the unique requirements of port-adjacent logistics properties, aerospace facilities, and the full range of industrial asset types throughout the South Bay.