HOUSTON—Only a year after opening, the $5 billion Panama Canal expansion project is already having a profound impact on the North American shipping industry. A new report from JLL reveals that as a result, industrial real estate demand is stronger than ever. The Port, Airport and Global Infrastructure Seaport Outlook 2017 details emerging shipping trends and provides an analysis of seaport-centric industrial space in 14 North American port markets.

“One of the most notable takeaways is the increase in cargo the Gulf Coast ports have seen, especially Port Houston,” John Talhelm, senior vice president, JLL industrial services group, tells GlobeSt.com. “The Houston market is seeing the advantages of infrastructure improvements made to the Port over the last few years. Thanks to Houston's diverse economy, international community and multimodal transport systems, Port Houston is positioned to continue gaining share, particularly as newly delivered petrochemical projects ramp up production.”

While West Coast port markets remain naturally competitive, demand is escalating around East and Gulf Coast ports. To tackle this demand, nearly 25.4 million square feet of industrial real estate is under construction in the 14 port markets tracked in the outlook, and 65% is in East and Gulf Coast ports.