HASBROUCK HEIGHTS, NJ–At a time when all East Coast port areas are competing frantically to be ready for the expanded inbound trade to come via a widened Panama Canal in 2014, the Port of New York and New Jersey has just been deemed top dog in the race by industrial analysts at Jones Lang LaSalle.
In its fourth annual report on national seaports, the NY/NJ port emerged as No. 1 for the first time. The new ranking cites the port’s existing – and rapidly growing – capacity to handle container shipments, its “excellent” rail connectivity, and the expedited plans for raising the Bayonne Bridge to accommodate larger vessels by the time “Panamax” opens.
JLL’s analysts use 25 standardized metrics for measuring port operations and real estate market factors in establishing the ranking.
“The Port of New York and New Jersey distinguishes itself from other seaport areas in the country because of the significant amount of space currently under construction and in the development pipeline,” says David Knee, mmanaging director for JLL’s industrial practice in New Jersey.
There are currently three projects totalling 934,000 square feet under construction in the port area (80% preleased). Two additional spec’ projects totalling 614,000 square feet were recently announced, and 14 that would provide about 7.1 million square feet are currently proposed.
Knee says demand is strong for modern, Class A space. He noted that state incentive programs such as the Urban Transit Hub tax credit and Grow New Jersey are fueling the growth in inventory to meet that demand.
In its report, JLL also recognized the impressive level of capital investment being made right now at the Port of New York and New Jersey.
With the Bayonne Bridge project, work has begun on a $1 billion effort to raise the lower deck from a clearance height of 151 feet to 215 feet in order to permit post-Panamax cargo vessels through by the time testing of the Panamax passage is finished in 2015.
Other port-related projects include the dredging of the Kill Van Kull and Newark Bay channels, the ExpressRail project to provide double-stacked rail service between the port and the Midwest, and Global Terminal & Container Services’ expansion of the Global Terminal Port Jersey in Bayonne. Global Terminal is developing 70 acres for a new container terminal.
“These expansive and forward-thinking projects are preparing the Port of New York and New Jersey to be a leading choice for businesses well into the future,” says JLL’s Bob Silverman, who is with its Supply Chain & Logistics Solutions group. “Industries requiring rapid ship-to-shore delivery can rely on these properties that are within the heart of a prime transportation corridor.”
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