LOS ANGELES-The Port of New York and New Jersey is widening its lead on the Los Angeles and Long Beach seaports as the top port in the US, according to the Jones Lang LaSalle Seaport Outlook report. The fifth-annual JLL report ranks the most prominent ports in the US.
This year, the report identifies the availability of industrial real estate surrounding the ports as one of the top three features shared by successful ports. The other two top factors include proximity to population density and improved infrastructure.
While vying for business amidst flat cargo volume growth, US seaports also face heated competition for post-Panama Canal expansion, with factors including a lack of proximity to population density and the need for improved infrastructure.
“Competition is rising even while trade growth is stagnant,” says Rich Thompson, managing director of JLL's Ports, Airports and Global Infrastructure group. “The emergence of marketplace shifts related to multi-channel retail strategies, as well as the soon-to-be completed Panama Canal expansion, are changing the positioning for many US ports. To gain market share, ports must both improve infrastructure, connectivity and possess required, class-A distribution center space to support the increasing demands of corporate supply chain strategies.”
As the top ports begin serving larger ships carrying double the number of containers, sites near to the ports are in great demand, with port-driven markets outperforming other top industrial real estate markets nationwide. The JLL report says there are only 11 available distribution center spaces larger than 500,000 square feet within 15 miles of any major seaport. Furthermore, only 23 blocks are available for warehouse space users in need of at least 250,000 square feet within five miles of a major port.
Having surpassed the California ports to claim the top spot in the JLL index in 2012, the Port of New York and New Jersey ranked first again this year year by a rapidly widening nine-point margin, followed by the ports of Los Angeles and Long Beach.
“The ports that succeed in our index are the shipping destinations best able to adapt to challenges of serving larger ships, expanding efficiencies and capacity while managing the ups and downs of a volatile global marketplace,” says Thompson. “The industrial real estate market in New Jersey offers more options for retailers that need to both store and distribute inventory immediately after it comes off the ships.”
,
The JLL reports says the highest ranking seaports in the index benefit from the following three primary factors:
(1) Population Density Proximity. The warehouse and distribution center markets bordering the ports in the Los Angeles and New York regions serve considerable super-regional populations. In the case of New York/New Jersey, the surrounding metropolitan population totals 30.9 million, and 80% of imports stay within 260 miles of the port.
(2) Real Estate Availability. Overall, the seaport markets continue to lead the broader industrial real estate market, making port-centric locations of perennial interest to investors in this property type. To help alleviate demand for big box space, national industrial construction is up 50% from one year ago and inland ports are being developed to provide an alternative to on-port warehouse and handling space.
(3) Improved Infrastructure. The winner in this category is the Port of Los Angeles, owing to its large and fast-growing container volume, rail connectivity and post-Panama expansion preparation. On this metric, New York / New Jersey is second while Long Beach, Savannah and Baltimore round out the top five.
A few other ports, such as Miami, are also undertaking major infrastructure improvements to improve connectivity and accelerate their competitive market positioning.
In second-and third-tier ports, the rankings were shuffled. Savannah continues to lead the second tier of ports in the JLL Index, followed by Baltimore and Jacksonville. The third tier has Charleston in the lead, followed by Tacoma and Virginia. Charleston and Virginia switched places compared to last year's rankings.
Several second and third tier markets have projects underway that, upon completion, will provide users with more options. For example, Miami is developing a new tunnel and rail system that will give the port easier access to 74% of the US population.
“As larger ships with double the capacity make calls on our US ports, one of the real differentiators will be the ports' ability to improve their throughput and to move those containers more efficiently and effectively from the ships to the major distribution centers and population hubs,” says Thompson.
A copy of the JLL Seaport Outlook report is available here.
As previously reported by GlobeSt.com, the Port of Los Angeles and the Port of Long Beach are both working on major infrastructure improvements.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.