SOCAL INDUSTRIAL REAL ESTATE SNAPSHOT ~ JUNE 2012 ~ THINK ABOUT THE PANAMA CANAL EXPANSION AND INLAND PORTSMay 31, 2012 on 12:47 am | In Fascinating Information, Investment Opportunities, Market Snapshot, New Developments, Uncategorized | 2 Comments
The under-construction Panama Canal expansion is two years from completion. You know that’s going to be good for Southern California. Yes, investors and Industrial property barons…the Los Angeles-area Industrial real estate market is going to pop in the near future.
The Third Set of Locks Expansion of the Panama Canal is a project doubles the capacity of the Panama Canal by 2014 by allowing more and larger ships to transit. With the big picture in mind, Los Angeles County has been constructing the Southern California International Gateway. The Gateway rail line links to the Alameda Corridor train line – that 20-mile-long rail cargo transport line linking the ports of Long Beach and Los Angeles to the transcontinental rail network near downtown Los Angeles. Yes indeed, Southern California is securing the logistics to receive larger “post-panamax” ships.
Already, the Inland Empire industrial economy strikes back… in recent months the Inland Empire has captured nearly 40% of all U.S. industrial absorption. Strong demand has pushed vacancy rates into the 7% range in San Bernardino and Riverside counties. And finally, we are seeing signs of rental growth and speculative development.
Remember the excitement that inland cities like Perris and Poway offered before the crash, look again. ..and think, Inland Ports. An Inland Port is an intermodal distribution centers connected to seaports via a Class I railroad and are located in proximity to three million people; they have foreign-trade zone status and an abundance of large warehouse and industrial space.
Already, Florida has announced its first inland port designed to handle both incoming and outbound freight across the state. Treasure Coast Intermodal Campus (TCIC) sits on more than 4,000 acres in southwest St. Lucie County, Florida. Now in pre-development, the Treasure Coast Intermodal Campus will be developed into a major logistics hub over the next 30 to 35 years.
Investors, take note > as you know the U.S. is pursuing its goal of doubling exports by the end of 2014. Thus, the outbound (export) side must expand > good for industrial production and warehousing throughout the region. Watch this market sector strengthen.
Gas prices aren’t going to drop any time soon. As transportation costs continue to escalate, companies will re-evaluate their supply chain network strategies and locate closer to their end customers. If freight costs skyrocket, it could lead to on-shoring – with more U.S. manufacturers returning to the states seeking cost-effective locations.
We’re here to help you with your commercial and investment property 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.
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