MIAMI-The Panama Canal expansion is set to be completed in 2014—but commercial real estate experts, economists, and port gurus are already talking about the potential impacts. Indeed, experts are addressing Panama Canal expansion and its impact on Miami’s economic and real estate landscapes today at an event called “The Panama Canal Expansion: A South Florida Economic & Real Estate Opportunity.”
GlobeSt.com caught up with John Carver, executive vice president of Port, Airport & Global Infrastructure at Jones Lang LaSalle, to discuss the opportunity for commercial real estate agents, Miami’s strengths as a port, and the Asian connection.
LeClaire: How much opportunity do you think the Panama Canal expansion is going to bring to the commercial real estate industry?
Carver: It’s going to be a game changer for the long run but I don’t think it’s necessarily going to be an immediate game changer. It’s going to take some time before the benefits of that investment are seen here in the US. But port authorities have long-term views. They have to look on a 20- and 30-year lifespan in order to assess the nature of the industry. A lot of money is being invested now in and around the ports along the East Coast and Gulf with the 30-year time frame in mind. It’s a little harder in the real estate world to think beyond five or 10 years. That is a reality check that we all need to have on the real estate side.
LeClaire: It seems the industrial market would be the obvious beneficiary.
Carver: Industrial is the first mover of all the different product types that we see out there today. Everyone is looking to industrial to lead the recovery and the port markets are leading the industrial recovery. There are a lot of eyes on a coast inward recovery and that is drawing attention to the ports like Miami. The ports will be the first indicators of a renewed industrial market place.
LeClaire: What do you see is Miami’s strengths from the port perspective?
Carver: Miami has two game changers on the horizon. We have the Panama Canal and, unlike all the other ports on the East Coast, Miami has one extra card—Brazil and South America. Miami is going benefit from its proximity to the Americas and its gateway to America positioning. Miami has a real opportunity to leverage into a new port focus and a new market focus to take advantage of activity from the expanded canal as it relates to the gateway to Latin America.
LeClaire: Tell me about the Asia connection here.
Carver: Obviously, the canal widening is to improve the all-water route from Asia. But Asian companies have been investing in South America long before they have in the U.S. Most of those companies end up taking a position in Miami in some fashion. If the canal gets expanded and we were able to see more trade from China and Malaysia and Vietnam coming through the canal to the Americas, that would have a spillover benefit to Miami that’s unique to Miami over the other ports further north.
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