Prices Jump At Warehouses Near Ports, Intermodal Ramps
E-commerce drove real estate prices for distribution centers near marine ports and intermodal ramps sky-high in 2017.
Buyers’ expectations of faster delivery times combined with an increasing number of short but more frequent shipments have led to a larger demand for warehouses in areas that provide quick and easy access to their customers, Transport Topics reports.
This trend is anticipated to continue over the next two years as increased discretionary income and confidence in the economy are expected to lead to stronger retail sales, which will intensify warehouse demand even more, Cushman & Wakefield reports.
As for market performance, Northern New Jersey was the most expensive area in which to find parcels of land to build distribution centers. The cost per acre rose by an estimated 17% year over year to $1.75M. The market is particularly attractive because it is close to New York City as well as the third-largest port in the country.
Inland Empire, which is close to both Los Angeles and Long Beach, California, rose by 35% year over year with an average of $980K per acre, while Atlanta saw real estate prices jump 14% year over year, largely due to the expansion and use of the Panama Canal, which is close to Savannah.
