ported farther inland, as far as Dallas, for
distribution after the canal expansion.
Currently, it is viable to transport them only
as far as Memphis. This will open up new
markets for such products.
Yap expects that the net result of the
expansion will be increased demand for
industrial space. “The cost of shipping
should be lower and the American con-
sumer could buy a bit more, which means
more products and more warehouse dis-
tribution,” he notes. “The jury is still out
in terms of which ports are going to ben-
efit the most.”
While market dynamics could change in
the post-Panamax world, industrial space in
markets close to large population centers is
likely to continue to be in demand. Two key
markets are California’s Greater Los
Angeles/Inland Empire region and the
I-78 and I-80 corridors in Central
Pennsylvania. The latter market, a major
distribution center, serves as “the backdoor
to the East,” according to Jim Dieter,
Chicago-based leader of Cushman &
Wakefield’s industrial platform. The region
also has space available for development.
“Probably the most exciting market
across the country is Central and Eastern
Pennsylvania,” Dieter says. “It’s on the dis-
“In a simple
center, power needs could
be three times as much.”
tribution corridor and has terrific accessibility to major population areas, and that’s
important to the whole supply chain cycle.
There’s a lot of leasing activity going on
there.” By the end of the second quarter of
2012, C&W reports, leasing activity in this
market hit 4. 3 million square feet, up 73%
from the first six months of 2011.
The Greater Los Angeles/Inland Empire
market also scores in terms of its popula-
tion base as well as its location near Los
Angeles’ Long Beach seaport. And it is con-
venient to transport onward cargo that is
dropped off from Viejo in this region.
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