Page 39: of Maritime Logistics Professional Magazine (Mar/Apr 2018)

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cargo traffc fows to the Los Angeles Ba- sin, Orange County, and the Inland Em- pire. This market posted a vacancy rate of just 2.2 percent last year and a rental rate of $9.60 psf. For the Port of New York and

New Jersey, the surrounding Northern and

Central New Jersey industrial market saw vacancy dwindle to an historic low of 3.8 percent while posting rental rates of $8.15 psf. When compared to the U.S. industrial market overall, which recorded vacancy rates of 5.1 percent and rental rates of just $5.84 psf, the demand for industrial real estate in these port markets is evident.

Demand by companies for this space will persist because of the increasing pressure on timed deliveries, and, as a result, cargo-handling improvements that reduce congestion and modernize warehouse infrastructure are in the im- mediate future for major U.S. seaports.

The Port Authority of New York and

New Jersey is currently implementing a state-of-the-art gate system that is ex- pected to decrease the average trucker turn time by 25 percent, while the Port of Los

Angeles is developing an 80-acre container terminal support facility that will support container peel-off operations and expand holding space for chassis and truckers.

For the Ports of Los Angeles and Long

Beach and Port of New York and New

Jersey, these and other ongoing en- hancements will allow facilities to keep pace with the infux of product that will continue to fow through terminals and the demand by suppliers to transload products into the surrounding region.

Ultimately, the markets for the top

U.S. seaports are expected to remain strong, and port enhancements across the U.S. will continue to be a critical investment for successful supply chains.

Kevin Turner

The Author is an Executive Director at Cushman & Wakefeld.

Turner is an expert in South- ern California Industrial Ports and Logistics and a SIOR and

Global Logistics Specialist, specializing in the sale, lease, and occupier representation of offce, industrial, and R&D properties.

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