The requested news item does not exist. Please return to News
Jones Lang LaSalle’s Seaport Index traces port success to infrastructure improvements, connectivity, availability of distribution center space, and proximity to population density
CHICAGO, July 2, 2013 — While vying for business amidst flat cargo volume growth, U.S. seaports also face heated competition for post-Panama Canal expansion market share. JLL’s fifth-annual Seaport Outlook ranks the most prominent ports in the U.S., this year identifying the availability of industrial real estate surrounding the ports as one of three top features shared by successful ports. The other two top factors include proximity to population density and improved infrastructure.
As the top ports begin serving larger “post-Panamax” ships carrying double the number of containers, sites near to the ports are in great demand, with port-driven markets outperforming other top industrial real estate markets nationwide. According to the report, there are only eleven available distribution center spaces larger than 500,000 square feet within 15 miles of any major seaport. Furthermore, only 23 blocks are available for warehouse space users in need of at least 250,000 square feet within five miles of a major port.
The highest ranking seaports in the index benefit from the following three primary factors:1. Population Density Proximity. The warehouse and distribution center markets bordering the ports in the Los Angeles and New York regions serve considerable super-regional populations. In the case of New York / New Jersey, the surrounding metropolitan population totals 30.9 million, and 80 percent of imports stay within 260 miles of the port. 2. Real Estate Availability. Overall, the seaport markets continue to lead the broader industrial real estate market, making port-centric locations of perennial interest to investors in this property type. To help alleviate demand for big box space, national industrial construction is up 50 percent from one year ago and inland ports are being developed to provide an alternative to on-port warehouse and handling space.3. Improved Infrastructure. The winner in this category is the Port of Los Angeles owing to its large and fast-growing container volume, rail connectivity and post-Panama expansion preparation. On this metric, New York / New Jersey is second while Long Beach, Savannah, and Baltimore round out the top five. A few other ports, such as Miami, are also undertaking major infrastructure improvements to improve connectivity and accelerate their competitive market positioning.Seaports to WatchWhen it comes to second-and third-tier ports, the rankings were shuffled: Savannah continues to lead the second tier of ports in the Index, followed by Baltimore and Jacksonville. The third tier has Charleston in the lead, followed by Tacoma and Virginia. Charleston and Virginia switched places compared to last year’s rankings. The good news for port executives and industrial real estate investors is that several second and third tier markets have projects underway that—upon completion—will eventually provide users with more options. For example, Miami is developing a new tunnel and rail system that will give the port easier access to 74 percent of the U.S. population. “As larger ships with double the capacity make calls on our U.S. ports, one of the real differentiators will be the ports ability to improve their throughput and to move those containers more efficiently and effectively from the ships to the major distribution centers and population hubs,” said Thompson. *For details on methodology please click hereAbout 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 $47.7 billion of real estate assets under management. For further information, visit www.jll.com. For more news, videos and research resources on Jones Lang LaSalle, please visit the firm’s global media center Web page http://www.joneslanglasalle.com/Pages/News.aspx.
+1 312 228 2344