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Port of Virginia Capacity Increases as Panama Canal Expands
NORFOLK, Va., August 26, 2013 — With limited large blocks of available space and warehouse/distribution vacancy already approaching pre-recession levels, the Hampton Roads industrial market may see an influx of new construction over the next 12 to 18 months as the Panama Canal expansion is completed and retail demand grows, according to research analysis from Jones Lang LaSalle.TEU volumes, which measure the capacity of container ships and terminals, have historically served as an indicator for warehouse and distribution vacancies in the Hampton Roads market, where larger vessels are making their way in the Port of Virginia.
Container vessels that have a TEU capacity of 9,178 are continuing to push the limits of the Port of Virginia, drafting 49 feet 3 inches of the port’s 50-foot channels. With the expansion of the Panama Canal, Post-Panamax and New-Panamax class vessels will boost per ship TEU capacity from 5,000 TEUs (Panamax class) to 12,000 TEUs. New construction may be needed to help manage this expansion.
"The growth of cargo moving through Virginia Ports relative to the number of vessel calls is a direct representation of the size of the vessels increasing," said Erin Corrie, a Senior Associate in the Hampton Roads office of Jones Lang LaSalle who previously served as the Economic Development Manager for the Virginia Port Authority.
"This is happening even before the completion of the Panama Canal expansion because the vessels are transiting the Suez Canal bound for the very few marine cargo facilities capable of handling the increasing draft requirements," said Corrie. "This increased cargo directly correlates with the demand for warehouse, distribution, and manufacturing space where the owners depend on maximizing their efficiencies through minimizing inland transportation costs."
About Jones Lang LaSalle Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $46.3 billion of real estate assets under management. For further information, visit www.jll.com.
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