Seaport Markets Outperform U.S. Industrial Overall
Led by Los Angeles with 6.8 million loaded twenty-foot equivalent (TEU) units, U.S. seaports experienced another strong year in 2018. The industrial markets surrounding them also performed well, says Colliers International.
The nine seaports showcased in Colliers’ new report on the sector finished the year with an overall vacancy rate of just 3.4%, well below the national average of 5%.
Despite these low vacancies, activity was strong, as 28 million square feet was absorbed and 35 million square feet of new construction was delivered, Colliers says.
While 2018 was robust, Colliers’ James Breeze and Pete Quinn cite “significant headwinds” in the forecast for 2019. Demand from American consumers should remain strong despite possibly increased prices brought on by tariffs, but could decline if the current trade skirmish escalates into a full-scale trade war, with downside risks to both inbound TEU counts and demand for distribution space near seaport locations.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).