Widening the Panama Canal Leads to Boom in Commercial Real Estate

The widening of the Panama Canal over the past 8 years has had a significant impact on the commercial real estate market. “Today, more than 70% of U.S. container traffic from Asia passes through Pacific ports, and as much as a third of those containers travel through Los Angeles and Long Beach by truck and train to consumers in the eastern half of the nation,” explains the Wall Street Journal. Because of this, port cities in the southern and east U.S are preparing for those metrics to change in a dramatic fashion. shutterstock_101877298-resized-600

By modernizing the Canal, ships carrying 2.5 times more freight can now pass through. This will allow higher margin goods from Asia to be shipped directly to the southern and eastern ports without using higher priced over-land routes. The time to buy port real estate is now as we draw closer to the completion of the Canal in 2016.

Baltimore, New York, Houston, Fort Lauderdale, Savannah and Miami are some of the major ports expected to accommodate the larger ships through the Canal by 2016. The large quantity of consumer goods being stored at industrial port sites is increasing and the developers, owners, and managers should be prepared with a flexible commercial solution like MRI Commercial Management to manage these new properties and to take full advantage of this new opportunity.

The Panama Canal is set to have a record impact on shipping and transportation routes in 2016. Property managers should make their impact with best-of-breed MRI Software!

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