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Bigger canal means dredging, leads to mega ships and soaring rents
EAST coast rents and property values are soaring because of the expansion of the Panama Canal and the dredging needed to provide access to mega ships, says Texas real estate giant Transwestern.
"The Port of New York and New Jersey is catching up to its west coast rivals thanks to increased traffic from the Panama Canal," said Transwestern's New Jersey research director Matthew Dolly.
"The higher demand has pushed existing buildings and developable land to premium prices, with cap rates now roughly equal to those near the Southern California ports," he said in his report, co-authored by Michael Soto.
Los Angeles and Long Beach remain No 1 and 2 ports in terms of container traffic, with their 2016 combined volume of 15.6 million TEU, is expected to grow 3.9 per cent annually through 2040.
"Proximity to customers is the top priority for retailers and manufacturers, so many are willing to pay higher rents to be closer to the population centre," said Mr Soto, Transwestern's southern California research chief.
"Even with more plentiful land in the Inland Empire, developers are weighing how far away they can build before the distance makes a location impractical for distribution centres," he said.
Their Transwestern "Ask the Expert" report went on to say the "biggest ports on both coasts have demonstrated their commitment to serving the largest containerships and maintaining high volumes of cargo traffic".
"The Port of New York and New Jersey is catching up to its west coast rivals thanks to increased traffic from the Panama Canal," said Transwestern's New Jersey research director Matthew Dolly.
"The higher demand has pushed existing buildings and developable land to premium prices, with cap rates now roughly equal to those near the Southern California ports," he said in his report, co-authored by Michael Soto.
Los Angeles and Long Beach remain No 1 and 2 ports in terms of container traffic, with their 2016 combined volume of 15.6 million TEU, is expected to grow 3.9 per cent annually through 2040.
"Proximity to customers is the top priority for retailers and manufacturers, so many are willing to pay higher rents to be closer to the population centre," said Mr Soto, Transwestern's southern California research chief.
"Even with more plentiful land in the Inland Empire, developers are weighing how far away they can build before the distance makes a location impractical for distribution centres," he said.
Their Transwestern "Ask the Expert" report went on to say the "biggest ports on both coasts have demonstrated their commitment to serving the largest containerships and maintaining high volumes of cargo traffic".
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