5,000 vessels call on the Port of Long Beach each year. The Port hosts more than 140 shipping lines and has connections to 217 ports worldwide.
California is an example of green construction. In 2008, state energy regulators adopted a long-term plan that called for having all new residential buildings achieve zero net energy use by 2020 and having all commercial buildings achieve zero net energy use by 2030. The provisions also reduce water use by 20% and divert 50% of construction waste from landfills.
L.A. is on track to reduce the city’s carbon emissions 35% below 1990 levels by 2030. Our goal is the greatest reduction target of any large US city. It takes the state’s stringent CalGreen building codes a step further.
So going forward, we’re good, but we’re still dealing with an existing building stock, and some antiquated customs and equipment all the way around. Restructuring a structure’s infrastructure (say that 3x fast) is not an overnight process. We are sprinting toward net zero construction, yet large parts of the old-style building infrastructure will still dominate the landscape for the next century.
Any improvements and renovations made to your properties can impact the environment. Be conscious of your choices in paint and floor coverings. Anything you upgrade on your properties can be done with green in mind heating, plumbing, and electric all offer green fixes that can save the business money on the long term, and increase profitability on resale.
But some things are a slow fix…we may be building green buildings, but the machinery used to construct the property may not be. You’ve seen those backhoes and cranes bellowing black diesel carbon fumes. Around the shop, some old power tools use 3x the needed energy.
Construction equipment companies are catching on. JCB is aware of their duty to make their plant machinery more environmentally sound. For example, the Scot JCB Digger has numerous variations including the brand new 3CX-ECO with increased fuel efficiency in all aspects of its functionality.
Construction companies – particularly in Southern California – are up to speed on CalGreen construction, ICC codes, and other modern methods. Our fair county is an example of sound building, with cities like West Hollywood, Los Angeles, and Santa Monica offering some of the strictest green construction codes in the country, if not the world. And we’re setting an example for going forward. Today’s green apprentice may someday become the foremen of their own company, selling jobs and their bids.
Green building goes beyond the edifice, it includes the source of the raw materials, and the distance they travelled, the equipment that goes into the building and that goes into building the building. Society is progressing forward at warp speed, and we’re along for the ride. Let’s do our best to contribute to the greater good for now and for generations to come.
Enjoy this enlightening video about how iron ore, an important global commodity, has become a promising new export at the Port of Long Beach.
by Jodi Summers
The Third Set of Locks Expansion of the Panama Canal doubles the capacity of the Panama Canal by 2015 by allowing more and larger ships to transit.
The $5.2 billion project creates a new lane of traffic along the canal by constructing a new set of locks. Ships as large as 12,000 or more TEUs (20-foot equivalent units—a measurement of container ship capacity) will be able to fit through the new locks vs. the 5,000 TEU ships that currently transit the Canal (which opened in 1914). The Canal is owned by Panama and is currently used more for Latin American shipping.
Pundits, forecasting the impact on our local ports have concluded that the Ports of LA and Long Beach are the most efficient port system in America and will “remain the leader for the foreseeable time,” thanks to our state-of-the-art ports and an efficient supply chain.
In fact, Port of Long Beach terminals saw a dramatic increase in cargo in February, moving 36.6% more containers compared to Feb. 2012. Imports surged nearly 46% – thanks to our growing economy, and the port saw a 17.2% jump in exports.
February’s total was 530,967 TEUs and the highest volume of import containers for a February since 2007.
Cargo increases in recent months are in part due to the port already accepting more frequent dockings of larger ships and the addition of service lines to Long Beach. In the latter part of last year, Mediterranean Shipping Co. and CMA CGM, two of the largest ocean carriers in the world, established exclusive hubs at the Port of Long Beach.
Once they’ve arrived, half of the containers coming into LA/Long Beach are transloaded onto trains or trucks out to the Midwest or Eastern US and the other half stay in SoCal warehouses to serve the Western US.
The Long Beach Board of Harbor Commissioners are currently behind Southern California International Gateway rail yard project approved recently by the Port of Los Angeles. The 153-acre facility proposed by BNSF Railway Co. sits just outside West Long Beach, alongside the Terminal Island Freeway on land owned by the Port of Los Angeles. The will serve on-dock rail facilities at both the Port of Long Beach and the Port of Los Angeles.
“Improvement of rail facilities is critical to the economic development of this port, and improved rail facilities are what we need in order to reduce emissions,” supports Harbor Commission President Susan E. Anderson Wise.
LA/Long Beach is in the midst of their $6 billion infrastructure construction program and is decades ahead of other ports in addressing environmental concerns such as truck emissions. Everyone wants to dock here.
It’s in the cards. In the future, we’re going to buy more stuff, build more stuff, make more stuff and warehouse more stuff, and these activities will keep SoCal industrial real estate market strong. Experts say the wide array of economic and real estate expansion that we are currently noticing around town will support healthy employment activity over next two years. This year, countywide employment is predicted to grow by 61,000 positions, or 1.6%, followed by 72,000 new hires in 2014, an increase of 1.8%.
Much of this new employment is coming in the way of new construction, and is good for the industrial market. Why kind of new construction, you wonder? Check out these billion dollar projects:
* Our football stadium, Farmers Field, was finally approved by the Los Angeles City Council in a 12-0 vote on September 28, 2012. The $1 billion, 78,000-seat stadium downtown in downtown will double the size of the Convention Center.
Soon, Los Angeles will be able to host an NFL team < this hasn’t happened since the Rams and the Raiders left Los Angeles at the end of 1994.
Construction of the project is anticipated to generate over $1.7 billion for the local economy, and add nearly 20,000 full-time jobs resulting from direct and indirect operations.
* The Tom Bradley International Terminal is undergoing a $1.5 billion renovation and expansion project that will be complete this year. This modern engineering marvel will feature 18 roomier boarding gates with nine built for new-generation aircrafts. The project is using recycled building materials and is expected to achieve a LEED Silver certification from the U.S. Green Building Council, as well as a host of other architecture and design awards.
The passenger experience will be enriched by upgraded customs/immigration and federal security screening areas for more efficient processing, as well as secured corridors so connecting passengers can travel between the New TBIT and Terminals 3 and 4. New state-of-the-art, baggage-handling systems will improve passenger wait times and speed travelers through the ticketing process.
Fyi, LAX is the sixth busiest airport in the world and third busiest in the United States, offering more than 600 daily flights to 91 domestic cities and over 1,000 weekly nonstop flights to 58 cities in 32 countries on nearly 75 air carriers. In 2011, LAX served more than 61.8 million passengers, processed more than 1.8 million tons of air cargo valued at nearly $84.6 billion, and handled 603,912 aircraft operations (landings and takeoffs).
* And the award for entertainment development goes to the Grand Avenue redevelopment project. Plans call for a $3 billion, 3.2 million-square-foot project near the Walt Disney Concert Hall in downtown Los Angeles. The project will include 2,600 residential units, 449,000 square feet of retail space, a five-star hotel, and a 16- acre park. The development is expected to support 5,900 permanent positions. The wide array of economic and real estate expansion will support healthy employment activity over the two-year forecast period. This year, countywide headcounts will grow by 61,000 positions, or 1.6%, followed by 72,000 new hires in 2014, an increase of 1.8%.
* And let us not forget our much-anticipated Expo Line light rail. The Expo Line will run from downtown Los Angeles to Santa Monica in approximately 46 minutes – even during rush hour. The 15.2 mile Expo Line will bring light rail to the Exposition Corridor, with 19 stations. Service on Phase 1 began service to the Culver City station on June 20, 2012. Phase 2 will extend the line out to Santa Monica and construction is scheduled to be completed in 2015. Estimated costs for the project are $930 million for Phase 1 and $1.5 billion for Phase 2. By 2030, an estimated 64,000 passengers are expected to ride the Expo Line each day – which would make it one of the most heavily used light rail lines in the country.
Those with a vision, see our growth. Be a part of the plan, buy more stuff, build more stuff, make more stuff and warehouse more stuff.
We’re here to help you with your real estate needs. Please contact Jodi Summers and the SoCal Investment Real Estate Group @ Sotheby’s International Realty – email@example.com or 310.392.1211, and let us move forward together.
by Jodi Summers
“What we’re trying to do is design the best building for the market.” Notes Panattoni Development partner Mark Payne.
The growth of Internet sales is creating a need for more warehousing. As you might expect, Los Angeles area industrial buyers place their priority on location. There is a desire for industrial sites near LAX, the Ports, UPS and FedEx stations. Taking a broader view, beyond local infill, there will be a demand for more distant locations where next-day delivery products can get shipped quickly and easily.
New development is going forward because experts praise the SoCal industrial real estate market as “by far the deepest and largest industrial market in the nation, with LA and Orange counties having the lowest and second-lowest vacancy rates at 2.4% 3.8%.”
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