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Hasbrouck Heights, NJ

NJ/NY Ports Rank Highest Among All East Coast Ports According to Jones Lang LaSalle’s PAGI Report

Report notes NJ/NY ports to plan $827 million for investment to fund critical projects in the next 5 years


HASBROUCK HEIGHTS, N.J., July 8, 2010 — A comprehensive index of U.S. ports, included as part of Jones Lang LaSalle’s recently released Ports, Airports and Global Infrastructure (PAGI) report, ranks the New Jersey/New York ports highest among all East Coast ports.  It also ranks third highest nationally, for planned infrastructure investment, relatively low vacancy rates and land value-to-lease ratio, among other indicators.
 
The report’s Port Index shows the New Jersey/New York port’s vacancy rate at 7.8 percent, the lowest vacancy of all East Coast ports, as well as a 2009 volume of 4,561,528 twenty-foot equivalent units (TEUs), the standard unit for measuring a shipping terminal’s cargo carrying capacity, making it the East Coast port with the highest shipping volume.
 
In addition, the report rated U.S. port markets on their impact to the surrounding real estate economy, finding NJ/NY the most crucial port on the East Coast, performing above the national average and having committed to substantial infrastructure investment in recent years.
 
“The PAGI report’s Port Index was developed to provide a benchmark of U.S. port markets from the perspective of the real estate stake holder, and the index’s findings brings a whole new light to the issues facing the New Jersey and New York ports,” said David Knee, managing director at Jones Lang LaSalle. “This report demonstrates the port’s strength in the market and its need for capital investment in order to remain a national leader and to fund future projects that will maintain the port’s competitive edge among East Coast and national ports.”
 
According to the report, the New Jersey/New York ports plan an estimated $827 million of investment for multiple projects in the next five years including The Harbor Deepening Project, Port Newark Container Terminal expansion, South Brooklyn Marine Terminal improvements, New York Container Terminal, Port Jersey Container Terminal and the NJ Maritime Transportation System.  The planned investment will keep the ports competitive in light of the Panama Canal expansion which due to be complete by 2015 will drive container traffic to the East Coast. 
 
The index also notes prominent New Jersey/ New York port landlords are still poised and ready to begin new projects as build-to-suit requirements return to the New Jersey Port submarket. As the economy and market conditions improve, investors have expressed their intentions to invest in Brownfield sites and existing products respectively in and around the port.
 
A defined set of measurable indicators were used when calculating the PAGI Report Port Index, including TEU volumes and port growth rates in addition to key performance metrics of the ports themselves. The Port Index takes into consideration factors such as land value-to-lease rate ratio, local vacancy rates, labor costs, on or near dock service by railroads, as well as planned infrastructure investment. Each port is given 30 points as a base start, and then the seven aforementioned criteria are ranked on a scale of 1-10, for a possible of 100 points.

About the PAGI report

The Port, Airport and Global Infrastructure report provides a detailed analysis of the current and future impact of economic development initiatives, cargo volumes, trade flows and shipping patterns on industrial real estate surrounding the nation’s top seaports and airports.  This is one of the only reports of its kind – drawing together trends in trade, supply chains and industrial real estate.
 
About Jones Lang LaSalle’s Logistics and Industrial Services
Jones Lang LaSalle’s Logistics and Industrial Services team include more than 220 professionals covering the top 50 industrial markets in the United States, Canada and Mexico, and an additional 330 more at work in major industrial markets around the globe.  In 2009, Jones Lang LaSalle’s Logistics and Industrial Services team completed some 1,307 transactions comprising more than 115 million square feet of space at a value in excess of $2.6 million.
 
About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2009 global revenue of $2.5 billion, Jones Lang LaSalle serves clients in 60 countries from 750 locations worldwide, including 180 corporate offices.  The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.6 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with approximately $40 billion of assets under management. For further information, please visit our Web site, www.joneslanglasalle.com.