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In the 19th century, the area was part of Antonio Maria Lugo's Rancho San Antonio. Its conversion to an industrial area began in 1887, when the Atchison, Topeka & Santa Fe Railway built its main line through the area. The ranch remained intact until Arcadia Bandini de Stearns Baker, reputedly once the wealthiest woman in Los Angeles, sold some of it around the turn of the 20th century. By the 1920s, factories had arrived. In the late 1940s, industrial leaders banded together with residents in the communities of Bandini and Rosewood and part of Bell Gardens to encourage commerce. They changed the name to match that goal.

The city was incorporated in 1960 to prevent neighboring cities such as Vernon and Los Angeles from annexing industrial land for tax revenue. In the 1970s and 1980s, Commerce successfully negotiated the turbulent period of deindustrialization that hammered nearby cities such as South Gate and Norwalk, maintaining much of its manufacturing and goods-distribution base and successfully converting former industrial land to lucrative commercial uses. The most notable example of this phenomenon is the Citadel outlet mall, which occupies the site of a former tire factory. With a major rail yard within its borders, Commerce has also benefited greatly from the huge expansion in international trade traffic through the ports of Los Angeles and Long Beach, albeit at the expense of severe air pollution caused by truck congestion on the Long Beach Freeway.

Chrysler had an assembly plant in Commerce from 1930 through July 1971 located at 5800 S. Eastern and Slauson. It was closed at the end of the 1971 model year, as Chrysler decided to triple-stack its transport trains for the 1972 model year; its Los Angeles facility couldn't accommodate this change.



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