Seeing Past the Pandemic: Industrial Demand and U.S. Seaports
In light of recent port congestion and supply chain issues, the NAIOP Research Foundation commissioned "Seeing Past the Pandemic: Industrial Demand and U.S. Seaports." This research brief, authored by Avison Young data experts, explores how closely industrial demand is tied to trends in port activity.
Specifically, it examines major U.S. port activity, truck traffic, and industrial space absorption, finding that changes in import volume substantially affect occupancy in port markets. Although the current port congestion may not last, industrial landlords can have confidence that port-accessible space will remain in high demand, even in the face of new construction.
Key takeaways from the report:
- Despite a brief disruption in trade in the early months of the COVID-19 pandemic, increasing trade volumes have supported long-term growth in industrial space absorption at port markets.
Smaller markets adjacent to recently expanded ports have experienced the strongest relative growth in demand for industrial space, but the Los Angeles-Long Beach port complex has experienced the largest increase in total trade volume, supporting strong demand for local industrial real estate.
The impact of port activity on real estate depends on the proportion of total industrial activity linked to the port. This effect is apparent in both larger and smaller markets.
Download the "Seeing Past the Pandemic: Industrial Demand and U.S. Seaports" research brief.
In light of recent port congestion and supply chain issues, the NAIOP Research Foundation commissioned a research brief, authored by Avison Young data experts, that explores how closely industrial demand is tied to trends in port activity.
# # #
About NAIOP: NAIOP, the Commercial Real Estate Development Association is the leading organization for developers, owners, investors and related professionals in office, industrial, retail, and mixed-use real estate. NAIOP provides unparalleled industry networking and education and advocates for effective legislation on behalf of our members. NAIOP advances responsible, sustainable development that creates jobs and benefits the communities in which our members work and live. For more information, visit naiop.org.
Kathryn Hamilton, NAIOP vice president for marketing and communications
703-904-7100, ext. 165