 |
| Panama Canal (Marcus & Millichap file photo) |
WALNUT CREEK, CA -- Q: How will the expansion of the Panama
Canal and the subsequent improvements to Miami and Port Everglades harbors
affect South Florida’s commercial real estate market?
 |
| Kirk Felici |
A: “The Panama Canal expansion is a historic event that
presents investors with an opportunity that comes along only once in a
generation,” says Kirk Felici, first vice president and regional manager
at Marcus & Millichap.
Being the closest to the Panama Canal, the Port of Miami and
Ft. Lauderdale’s Port Everglades will have an advantage over other eastern
seaboard ports.
The Port of Miami has already begun port and storage
expansion to accommodate larger post-Panamax ships and more traffic.
In addition, the port authority is planning a $1 billion
tunnel project that will prevent increased trucking traffic from congesting
current roadways while allowing improved access to intermodal transportation to
move cargo inland from the port. Port Everglades is also planning a $313
million project to deepen its canal.
According to Felici, the Panama Canal expansion is projected
to significantly impact commercial real estate demand in South Florida. The
increased cargo volume will increase demand for all four of the major property
types that Marcus & Millichap represent: industrial, office, shopping
centers, and apartments.
“Within 10 years of completion of the canal and our port
expansions, port volume is projected to double and create 3% annual job
growth,” Felici says. “Increased cargo volume is expected to increase demand
for commercial properties such as storage facilities, distribution centers, and
warehouses.”
He adds, “Other port-related businesses such as custom
brokers, logistic firms and freight forwarders will also need additional
warehouse and office space due to demand created by post-Panamax deliveries.”
Commercial property investors are projected to see a strong
return on investment fueled by three key factors:
•Job growth — More local jobs will power a strong demand for
housing and retail properties.
•International economic growth — As the gateway to South
America, Florida ports will provide essential infrastructure for that growing
region. In addition, special events such as soccer’s World Cup and the Olympics
(both slated to be hosted by Brazil in coming years) will create demand spikes
that will further increase demand for commercial properties.
•Geographic and industrial zone limitations — South
Florida’s limited commercial property supply will also put these properties at
a premium. The peninsula not only has limited commercial space because of
geographic constraints, but also because of zoning restrictions for industrial
properties. The value of that land will definitely increase as Panama Canal traffic
picks up.
Felici says, “In anticipation of the coming growth, prudent
investors can get ahead of the cycle by investing in these properties now. As
demand grows so will rents and therefore prices will also increase, and
investors are likely to be in a strong position for good ROI.”
For a complete copy of the company’s news release, please
contact:
Kirk Felici
786-522-7050
.
Marcus & Millichap
5900 North Andrews Avenue
Suite 100
Ft. Lauderdale, FL 33309
Tel: (954) 245-3400
Fax: (954) 245-3410
Marcus & Millichap
5201 Blue Lagoon Drive
Suite 100
Miami, FL 33126
Tel: (786) 522-7000
Fax: (786) 522-7010
No comments:
Post a Comment