2015-08-01 - PAGI-Seaport- JLL

Seaport Outlook
Port, Airport & Global Infrastructure (PAGI) research
North America | 2015

JLL | North America | PAGI Seaport | 2015 2
A new Panama Canal will
open early next year,
and – given recent labor
issues at U.S. West Coast
ports – many of JLL’s clients
are asking how the
continent’s industrial seaport
markets will be affected. We
evaluate the trends to give
you the answers.

The JLL North America Seaport Outlook provides a
distinctive analysis of seaport-centric industrial space in
gateway real estate markets. Observing the influence of
global economic drivers, including trade and cargo flows,
socioeconomic and political factors, as well as port capacity
and infrastructure investment, it provides both a macro
overview of current trends impacting the domestic sector in
addition to detailed information on major seaports. This
report explores industrial property fundamentals in a 15-mile
radius from seaports, given a minimum building size of
50,000 square feet.
Key takeaways 4
Industrial occupancy strong on both coasts 5
TEU market share has been shifting to the east 8
TEU fluctuations, by seaport 8
Status update in Panama 9
Six key developments that will
Impact seaport-related real estate 10
Seaport property clock 12
2015 PAGI Index Score methodology 13
Select top seaports and property market indicators 14
Local seaports 15
Port of New York / New Jersey 16
Port of Long Beach 18
Port of Los Angeles 20
Port of Savannah 22
Port of Tacoma 24
Port of Metro Vancouver 26
Port of Baltimore 28
Port of Houston 30
Port of Charleston 32
Port of Virginia 34
Port of Montreal 36
Port of Oakland 38
Port of Jacksonville 40
Port of Miami 42
Port of Seattle 44
Port, Airport & Global Infrastructure report authors 46
Table of contents

• Market share shifts east: Shippers continue to
diversify how goods enter and leave the country as
a way to mitigate potential supply chain disruptions.
What was once a 61.2 percent TEU market share
for West Coast ports in 2007 has since declined to
55.2 percent.
• Industrial occupancy is healthy on both coasts: West
Coast seaport markets had a collective occupancy
increase of 2.2 percent in 2014 compared to 2007,
while Gulf/East Coast markets were up 4.4 percent
over the same time period.
• Not all industrial markets are created equal: Many
older seaports are constrained by the cities that built
up around them, and not all available facilities are
viable options for today’s industrial users. Lack of
functioning obsolescence can be an issue—this can
put upward pressure on rents for quality, relevant
space in markets like New York / New Jersey, Los
Angeles and Oakland.
• There are different types of cargo: Much of the highly
publicized cargo shift to the eastern seaboard is
discretionary (goods not destined for local
consumption, but can move through any entry point of
the shipper’s choosing). At the end of the day, seaport
markets based in notable population centers are
faring well: It’s a matter of where goods ultimately end
up rather than where they enter the continent.
• New York, New York: The Port of New York / New
Jersey, for the fourth consecutive year, outranks all
other seaports based on JLL’s PAGI scoring
methodology. 2014 TEU volume was up 40.9 percent
from 2007, and several large block availabilities –
albeit, in generally older facilities – offer options to
industrial users. New infill development will help
satisfy demand for modern space.
• Two and three: Long Beach and Los Angeles round
out our top three. Industrial vacancy in both markets is
under 4.0 percent, and their collective TEU volume is
2.5x that of New York / New Jersey. They are
anticipated to remain the primary gateway into the
United States in the years to come based on their
infrastructure, automation enhancements and strong
rail connectivity to interior U.S. markets.
• Savannah, Charleston and Virginia are well-
positioned: An expanded Panama Canal is scheduled
to debut in the first half of 2016, and these ports –
along with New York / New Jersey – offer access to
battleground, densely populated regions. Each has
strong rail connections, and more West Coast
discretionary cargo will likely call on these ports.
• Eighty-seven percent: of the world’s fleet, in terms of
total TEU capacity, will be able to traverse the new
Panama Canal, according to the Journal of
Commerce. Additionally, as much as 10.0 percent of
container traffic between East Asia and the United
States could shift from U.S. West Coast ports to their
eastern seaboard counterparts by 2020, according to
research from The Boston Consulting Group and C.H.
Robinson. Although the aforementioned East Coast
ports may receive increased TEU traffic, it cannot be
assumed that demand for warehouse space will
transfer equally. There are too many complexities and
variables (freight rail costs, intermodal, automation,
etc.) in the movement of goods to portend a macro
shift in industrial occupancy from the West Coast to
eastern seaboard markets.
Key takeaways
4JLL | North America | PAGI Seaport | 2015

Industrial occupancy strong on both coasts
Laying the groundwork for a bigger shift
Merchant shipping is the lifeblood of the world economy and transports
90.0 percent of international trade. Yet, serious cracks have appeared in
the U.S. landscape after an 11-month disagreement between the Pacific
Maritime Association (PMA) and International Longshore Warehouse
Union (ILWU) crippled West Coast seaports during the 2014 holiday
season and carried over well into the first half of 2015. Described as a
“perfect storm” of events, the ordeal reinforced a progressive cargo
market share shift that has occurred from West to East Coast ports, and
pushed the notion that an expanded Panama Canal will likely expedite
the cargo shift trend once it opens.
Intensifying competition among major seaports seems to be given over
the next 10 years, but what about their adjoining industrial markets? How
will they fare?
TEUs and industrial occupancy
In this report, JLL tracks North American warehouse/distribution and
manufacturing facilities in excess of 50,000 square feet within a 15-mile
radius of 15 major seaports. Thirteen seaports are based in the United
States, while the remaining two are in Canada. The 15 markets comprise
1.6 billion square feet of existing stock, or 11.6 percent of Canada and
the United States’ combined inventory. These seaport-centric markets
largely cater to occupiers that have fast moving, high cost and time
sensitive products (such as food & beverage and 3PL tenants).
Fluctuations in TEU volumes affect industrial space needs, and a
substantial drop in cargo traffic will, for instance, prompt a decline in
industrial occupancy. Conversely, an increase in TEU volume will lead to
occupancy increases. This especially applies to imported goods, which,
in the case of the United States, totaled $2.37 trillion in 2014, or 60.0
percent of two-way trade. More imports translate to more warehouse
space needs.
West Coast seaports
West Coast seaports – Vancouver, Tacoma, Seattle, Oakland/East Bay,
Long Beach and Los Angeles – have collectively lost containerized traffic
to their eastern seaboard counterparts in recent years: Going from a 61.2
percent annual market share in 2007 to 55.2 percent in 2014. If the
cargo-to-industrial-space-needs correlation holds true, then West Coast
occupancy figures should have decreased, but this is not the case when
surveying the data: Although 2014 TEU volume was down 2.2 percent
(529,010 containers) from 2007’s peak, occupancy was slightly up by
2.6 percent.1
Tacoma led West Coast seaport markets in occupancy gains with
9.0 million square feet, and much of this is due to its location in Pierce
County where much of greater Seattle’s industrial development is
occurring. A highly mature Los Angeles was second with 4.0 million
square feet; infill and re-developments in recent years account for
this increase. In the end, West Coast seaport markets had a
collective 4.5 percent vacancy by year-end 2014 – a rate that is highly
landlord-favorable.
Gulf/East Coast seaports
Gulf/East Coast seaports’ combined TEU traffic in 2014, on the other
hand, exceeded 2007 by 25.3 percent (3.9 million containers), while
occupancy was up 4.5 percent over the same period. One reason for the
eastern seaboard’s occupancy jump is population: In the case of the
United States, two-thirds of the nation’s population resides east of the
Mississippi River, with high densities in the Northeast and Mid-Atlantic,
and notable pockets in the Southeast. The Port of New York / New
Jersey is in the heart of the Northeast; Baltimore and Virginia (only 350
miles apart) serve the Mid-Atlantic; Charleston and Savannah (roughly
60 miles apart) cater to Atlanta; and Miami and Jacksonville handle the
Florida catchment area. Over the last three years, most eastern
seaboard markets have seen healthy annual net absorption gains and
new construction has been minimal.
West Coast seaports (and their immediate industrial markets)
620
630
640
650
660
670
15.0
17.5
20.0
22.5
25.0
2007 2008 2009 2010 2011 2012 2013 2014
Occupieds.f.(inmillions)
TEUs(inmillions)
TEUs Occupied s.f.
1 Vancouver had remarkable TEU growth over the 2007-2014 timeline, however. U.S. port labor matters do not affect Canada, which rendered Vancouver a viable Plan B to recent U.S. West Coast issues.

6
At the end of the day, more TEUs lead to higher occupancy levels in
markets with functional space on hand:
• Savannah’s realized a 28.5 percent cargo increase from 2007 to
2014, while its adjacent industrial market’s occupancy increased by
41.3 percent (9.4 million square feet).
• Houston’s traffic increased by 11.3 percent, and occupancy grew by
24.0 percent (8.7 million square feet).
• Virginia’s cargo grew by 12.4 percent, and occupancy rose by 4.4
percent (1.4 million square feet).
Seaport markets like Savannah and Houston, aside from cargo
growth, also have available land for development. Their year-end 2014
vacancy rates of 5.6 percent and 3.7 percent, respectively, were well
below the Gulf/East Coast’s 7.5 percent average. For Houston, the
port’s immediate market has seen a drastic increase in net rents of
$0.72 per square foot per year, and overall vacancy has steadily
decreased quarter-over-quarter as more tenants are moving into the
market or expanding.
Population centers and rent premiums
TEUs and industrial occupancy are complementary, as a dip in the
recessionary year of 2009 highlights, yet the bigger question is where
cargo’s end destination/point of origination is. In the case of Los Angeles
and Long Beach, the nation’s busiest seaports, two-thirds of all incoming
cargo is discretionary, meaning it is bound for markets like Dallas / Fort
Worth and Chicago. While market share declines at Southern California’s
seaports may be a concern for port officials, the impact of a cargo shift
has yet to impact the region’s industrial markets.
Established markets home to large consumer bases are expected to
continue to prosper, and seaport-adjacent product will often command
rent premiums in relation to a given market’s greater average. The
premiums often stem from quality space, however: Many older seaport
industrial markets are constrained by the cities and other property uses
around them, and not all available facilities are viable options for today’s
industrial users. Obsolescence, or a lack of functioning or quality space,
can be an issue and this can put upward pressure on rents for relevant,
quality space in markets like New York / New Jersey, Los Angeles and
Oakland. Users with larger footprint requirements will often look further
inland for more modern space.
The East Coast’s established (and up-and-coming) seaports
The Port of New York / New Jersey is the nation’s third busiest and its
cargo volumes exceeded 2007 levels by a staggering 40.9 percent. A
2002 10-day lockout at U.S. West Coast ports (in addition to their recent
aforementioned labor issues) are big factors in the port’s growth. With
direct access to the Northeast’s highly dense population, volumes will
only increase – especially when a raised Bayonne Bridge is ready by the
second half of 2016. This will pave the way for ships carrying up to
14,000 TEUs to call on the port as they traverse the Suez Canal or a
newly expanded Panama Canal. On-dock rail connections with the new
ExpressRail System will help expedite traffic flows, as cargo makes its
way via Norfolk Southern and CSX rail lines throughout the Northeast.
The uptick in cargo volume is already impacting net absorption totals in
greater New Jersey and Philadelphia’s industrial markets: Vacancies are
at or very near last cycle’s lows.
Savannah is the fourth busiest container seaport with 2014 volumes
exceeding 2007 by 28.5 percent. Although Savannah’s immediate
industrial market is the second smallest in this study with 32.7 million
square feet, development activity has been substantial in recent years
with 22.7 percent of its stock built from 2007 to the present. The market
is essentially a quickly growing throughput hub, where companies such
as Home Depot and The Dollar Tree have large facilities to sift through
cargo before most of it is routed via CSX and Norfolk Southern rail lines
to Atlanta. Port volume growth has been explosive over the past few
decades, and much of this can be traced to the Southeast’s emergence
as a major manufacturing hub.
JLL | North America | PAGI Seaport | 2015
Gulf / East Coast seaports (and their immediate
industrial markets)
780
800
820
840
860
10.0
12.5
15.0
17.5
20.0
2007 2008 2009 2010 2011 2012 2013 2014
Occupieds.f.(inmillions)
TEUs(inmillions)
TEUs Occupied s.f.
Select seaport industrial markets in notable population centers
Immediate
MSA population
(in millions)
Seaport
market size
(m.s.f.)
Average
construction date
Seaport
rent
Greater market
rent
Seaport
rent premium
vs. greater market
New York / New
Jersey
23.6 308.5 1956 $6.46 $5.24 23.3%
Los Angeles 13.0 132.1 1977 $7.83 $7.00 11.9%
Oakland 4.6 87.2 1963 $7.76 $6.98 11.2%
Seattle 3.6 92.2 1973 $6.17 $5.82 6.0%
Miami 5.9 102.1 1982 $7.08 $6.74 5.0%

7
Charleston only ranks ninth in our survey in annual TEU volume, yet
2014’s cargo volumes surpassed 2007 by 38.9 percent. Charleston, like
Savannah, is a throughput hub and has the smallest industrial base in
this study with 20.3 million square feet, and one of its core strengths lies
in its rail connectivity. Namely, an on-dock Norfolk Southern line (with
double-stacking capabilities) runs 212 miles inland to Greer, South
Carolina. Greer is home to the 220-acre South Carolina Inland Port
(opened in 2013), where Michelin and other international manufacturers
operate. The location is within a one-day drive time to more than 95
million consumers, and the rail line serves as a vital land-to-water bridge
to send exports to global markets. BMW, for instance, uses rail to
transport about 70.0 percent of the 1,200 cars it makes daily at its Greer
plant to the seaport.
Virginia is an access point to the Mid-Atlantic’s population and has on-
dock rail connections – with double-stacking capabilities – to markets like
Columbus and Chicago via Norfolk Southern’s “Heartland Corridor.” Both
Virginia and Baltimore have channels deep enough to handle today’s
modern container vessels, yet Virginia’s double-stacking rail network
gives it a distinct advantage over its neighbor to the north.
JLL | North America | PAGI Seaport | 2015
Conclusion and key takeaways
• TEU volume from our 15 surveyed seaports reached 43.4
million containers in 2014, surpassing their 2007 total by
8.5 percent.
• TEU volume in 2014 was up 4.6 percent from 2013.
• West Coast discretionary cargo will continue to shift to the
eastern seaboard.
• The Ports of New York / New Jersey, Savannah, Charleston
and Virginia have had big increases in their TEU traffic since
2007; their infrastructure connectivity to inland markets makes
them ports to watch when a new Panama Canal opens.
• Rail connectivity to and from a seaport matters. It helps
alleviate congestion, is a cheaper alternative to long haul
trucking and links seaports to interior markets; read JLL’s
whitepaper, “The re-emergence of the iron horse” for
additional details.
• Inland port development, such as in West Virginia, continues
to be a focus of many port authorities who do not have
proximate population densities but do not want to lose control
of cargo flows and associated fees.
• Industrial occupancy is healthy in both West and East Coast
seaport markets. This is good news for landlords of quality
product since they can more aggressively push rents.
• Vacancies in seaport markets like Baltimore and New York /
New Jersey will likely remain flat—obsolete inventory will sit
dormant and available as tenants look farther inland (or to
adjacent markets or submarkets) for modern space. An
opportunity exists for infill or redevelopment, however, if
market rents begin to exceed replacement costs.
• Fundamentals are tightening in all seaport markets, and those
with quality industrial real estate located in population centers
will continue to see rents outpace greater market averages.

LA/LB will still remain the dominant player
but Vancouver and several East Coast ports had big gains
-3.2%
-11.5%
+16.7%
+0.3%
+40.9%
+28.5
+12.4%
+11.3% +38.9%
+2.9%
+48.0% -0.9% +25.1%
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000 2014 vs.2007 TEUs (% change)
West Coast seaports
East Coast seaports
LA-LB still leads NY/NJ by
a factor of more than 2.5x
TEUs have been shifting to the east
A new Panama Canal will advance this trend
Tacoma
West coast seaports,
market share
Gulf/east coast seaports,
market share
Oakland
New
York /
New
Jersey
Seattle
Houston
Miami
JAX
Savannah
Charleston
Virginia
Baltimore
Long
Beach
Los
Angeles
61.2%
in 2007
to
55.2%
in 2014
44.8%
in 2014
from
38.8%
in 2007
6.0%
Vancouver
Montreal
Source: JLL and individual seaports
TEUs

Status update in Panama
Ninety percent complete
The final set of locks were installed as of June 2015, as engineers
flooded the new canal to begin compliance and operational tests. The
Panama Canal’s expansion, which will accommodate containerships
with a 12,000- to 14,000-TEU capacity, dependent on a vessel’s design
and load configuration, is slated to open April 2016. This TEU haul
capacity marks a 2.5x increase from current canal vessel restrictions.
Eighty-seven percent of the world fleet, in terms of total capacity, will
be able to navigate the canal, while 157 ships, with a total fleet capacity
of 2.7 million TEUs (in service and on order) are too large for the new
passageway.2 As much as 10.0 percent of container traffic between
East Asia and the U.S. could shift from U.S. West Coast ports to their
eastern seaboard counterparts by 2020.
West and East Coast TEU rivalry to intensify
Historically, 43.0 percent of U.S. incoming traffic moves through the
Ports of Los Angeles-Long Beach, of which two-thirds makes its way
by rail to major markets in the Midwest and the Northeastern United
States. While this was the cheapest and fastest option to transport
goods from, say, Shanghai to New York, PMA-ILWU labor issues have
tarnished sole reliance on this approach. Shippers, as a result, are
calling on multiple ports to help mitigate potential supply chain
disruptions.
Discretionary cargo shifts from the West Coast to the eastern seaboard
ports are here to stay, and the new canal will likely expedite this trend,
given its two primary benefits: 1) Being able to accommodate larger
vessels, and the economies-of-scale they offer to shippers in the form
of reduced transport costs per TEU; and 2) Speed—a Post-Panamax
vessel can reach New York two to three days faster through Panama
than the Suez Canal. The canal will still compete with the Ports of Long
Beach and Los Angeles, however, which are automating many of their
terminals and have strong rail connections to Southwest and
Midwest markets.
Multiple points of entry
Shipping rates, transit time and reliability are some of the things that
ultimately influence how cargo enters and leaves the continent, and the
canal faces competition from several trade routes. Returning to the
Shanghai-to-New-York example, a list of popular routes and their
average transit time (barring potential disruptions) include:
• The Port of Los Angeles to intermodal rail: 19-22 days
• Panama Canal to the Port of New York / New Jersey: 25-26 days
• Suez Canal to the Port of New York / New Jersey: 27-28 days
These trade lanes will, however, face increasing competition from
Canadian and Mexican seaports as their land-bridging rail networks
evolve. For instance, the Canadian National Railway will build a new
terminal outside of Toronto that will increase its annual capacity by
350,000 containers and expedite cross-border trade with the United
States. In the case of Mexico, APM will open a new terminal at
Mexico’s Lazaro Cardenas by 2016, which will welcome mega-vessels
at the port, and increase TEU capacity by 1.2 million containers.
Kansas City Southern, the exclusive rail service provider to the port –
with connections through Texas (and links to the continent’s greater rail
network) – is anticipated to see an uptick in intermodal volumes when
the terminal opens. In the fourth quarter of 2014, for instance, the
railway noted a 30.0 percent volume growth in intermodal traffic tied to
the port.
The auto industry and the Panama Canal
Automotive manufacturing in the Southeastern United States has
grown exponentially in recent years with new facilities as of late for
BMW and Volvo in South Carolina, Kia in Georgia and Mercedes in
Alabama. All states in the region have right-to-work designation, many
offer competitive economic incentives and Class I railroads are
enhancing their networks’ connectivity. Ports like Savannah and
Charleston offer access to Western Europe, and a new Panama Canal
will reduce transit times to Asian markets.
Mexico – with its giant labor pool and lower wages – continues to rival
the Southeastern United States. For instance, Mexico’s vehicle
production may easily reach five million cars per year by 2020, or a
56.0 percent increase from 2014’s total. The country also has a host of
free trade agreements: Audi, for instance, will open a 3.2 million-
square-foot assembly plant in 2016, and cited more than 40 pacts that
give the company access to markets that contain 60.0 percent of the
world’s economic output.3
Cold storage space on the rise
South Florida remains a notable gateway for perishable goods imports,
especially from Latin America, and cold storage space is in high
demand. Other port markets are enhancing their cold chain footprints
as well, with Preferred Freezer Services adding two new facilities in
Houston in recent years and regional companies expanding their
Savannah facilities to meet trade projections once the Panama
Canal opens.
In terms of port infrastructure, Miami recently doubled its reefer plugs
while Savannah is aligning its already robust frozen exporting facilities
to accommodate more perishable imports. Both ports now have on-site
U.S. Customs and USDA officials for the faster dissemination of South
American perishable items to the rest of the United States.
2 http://www.joc.com/maritime-news/container-lines/panama-canal-expansion-will-unleash-huge-supply-tonnage-all-water-services_20150528.html?mgs1=e65bkaHMJ3
3 http://www.wsj.com/articles/why-auto-makers-are-building-new-factories-in-mexico-not-the-u-s-1426645802.

Six key developments that will impact seaport-
related real estate in the next few years
1. How does uneven GDP growth abroad affect the United States?
Growth on a global scale has become woefully uneven with
developing nations like China slowing, and countries across Europe
hardly growing. The result has been a flight-to-quality by many
market participants, which has produced a swift rise in the dollar. As
a result, containerized ship exports have fallen nearly 30.0 percent
over the past year, bringing them to their lowest level since 2010.
2. Will less manufacturing in China become a boon for other
developing economies?
China has begun the slow process of evolving its economy into one
that is more service based, thereby reducing its dependence on
manufacturing. Chinese wages have more than doubled over the
past five years, and are likely to surpass those of other
manufacturing based economies. As the country transitions, other
economies around the world will have an opportunity to become
alternatives to China. While some Southeast Asian economies may
be best poised to take over China’s role, over the long-term several
other new nations may be able to enter the fold.
3. Will a rise in Mexican manufacturing create greater demand for
intermodal rail? And inland ports?
Developing economies now make up 39.0 percent of global output.
Over the next decade Mexico is expected to become a larger part
of that output. The automotive industry has already begun to utilize
the budding manufacturing hub, making the country the second
largest exporter of cars to the United States. In response to
Mexico’s growth, the trucking and rail industries have announced
plans to increase their capacity and ability to service exports from
the country.
4. Will labor strikes alone change the nature of cargo flows into
U.S. markets?
The reality is that labor disputes are often short-term glitches in the
system and rarely have any long-term impact on shipper preference
for ports of call. Yet, underlying operational inefficiencies and
insufficient investment in port and near-port infrastructure do pose
risks that could ultimately shift supply chain models that direct cargo
in and out of U.S. ports. In terms of port readiness, when taking into
consideration a trend toward larger capacity mega container
vessels, West Coast ports are still the first choice for shippers of
goods destined for U.S. markets.
5. What projected investment is needed for U.S. ports over the
next 25 years?
Public investment in port and near-port infrastructure and operations
is necessary to maintain a competitive advantage in today’s global
economy. A recently released AAPA study, 2015 The State of
Freight, found that public investment needs alone would exceed $30
billion by 2020 and a staggering $92 billion by 2040 just to maintain
both navigational dredging and operation and maintenance needs.
At current investment levels, the United States will fall short of these
projections by nearly $46 billion over the same time period.
6. The dawn of the Triple E Class mega ship is coming, but will
U.S. gateway ports be ready when they arrive?
An 18,000 TEU ship has yet to land on North America’s shores. The
largest vessel to date was the MSC Renee with a 13,119 TEU
capacity, which called on APM Terminal’s Pier 400 at the Port of
Los Angeles in March 2015. Despite the APM Terminal’s modern
advancements, which make it the most advanced and automated
port in North America, the terminal would not be prepared to handle
the capacity of an 18,000 TEU vessel today. Port operators and the
supporting local municipalities need to think and plan strategically
about their port and near-port infrastructure and what capital
investment is needed to handle the growing volume of container
traffic that is destined for their ports.
1 Vancouver had remarkable TEU growth over the 2007-2014 timeline, however. U.S. port labor matters do not affect Canada, which rendered Vancouver a viable Plan B to recent U.S. West Coast issues.
Next economy?
Rising dollar
Near shoring
$ 92 billion investment
needed by 2040

The JLL seaport property clock shows where industrial markets that are
adjacent to major North American seaports are in their rental growth
cycle. Markets generally move clockwise around the dial, with those
markets on the left side generally facing more landlord-favorable
characteristics, whereas those on the right experience generally tenant-
favorable conditions. Pricing upswings can slow or reverse, as is
indicated by what could be a temporary stall in a few markets, while
others have surged in the past year as leasing velocity picked up.
Three of our seaports were in the peaking quadrant during 2014, and the
count has since jumped to seven this year. Rents in these markets are
beginning to resemble (and in some cases surpass) prior cyclical highs,
and infill construction/redevelopment is occurring in most of them.
Landlord conditions are favorable in all seaport markets, and ten had
clockwise movements this year, while the remaining five held steady.
In the case of the United States, the national aggregate position is just
under the rising market quadrant. All 50 U.S. markets are rising, meaning
landlords are increasingly gaining leverage across the country. Rent
growth is prevalent and speculative construction is becoming more
widespread in terms of both geography and size segments. Rents in the
Class A sector have firmed and are on the rise in nearly all U.S. markets,
while B product is recording gains, notably in the nation’s core logistics
hubs. It is feasible the U.S. will enter the peaking quadrant by the second
half of the year. For Canada, the country is hovering between the peaking
and rising market quadrants.
Seaport property clock
Moving clockwise
Holding steady
Moving counter-clockwise
Peaking
market
Falling
market
Rising
market
Bottoming market
Port of Charleston, Port of Montreal,
Port of Virginia, Port of Savannah
Port of Baltimore
Port of Houston, Port of Miami, Port of Los Angeles
Port of Seattle
Port of Oakland, Port of Tacoma
Port of New York / New Jersey
Port of Long Beach, Port of Vancouver
Port of Jacksonville

The PAGI score was created to provide a quick snapshot of
North America's seaports from the vantage point of the real estate
stakeholder — those who invest in, develop or occupy industrial
property in port-centric locations.
The index was based on 25 measurable performance metrics,
divided into two major categories: terminal operating factors and
the corresponding real estate market factors. The resulting index
score is then a combination of the performance indicators,
providing a subjective measure of a port’s value to JLL clients and
their customers.
The real estate metrics taken into consideration include the total
amount of industrial real estate stock, the age of the inventory,
vacancy rates and availability of suitable blocks of space within 5, 15
and 50 miles of each port. The highest real estate scores go to the
ports that have a healthy supply of modern stock and with still plenty
of options for port-related users to lease or buy. This year, the
highest score belongs to New York / New Jersey with its dense and
dynamic markets just a short drive from the terminals. The Ports of
Long Beach and Los Angeles followed, and the divide was notable
since their counts of available, larger blocks of space were less than
New York / New Jersey. As a grouping, these three ports are well
ahead of their competitors.
The terminal operating metrics are designed to capture the health
and growth of the ports as well as their functionality and connectivity.
These measures quantify the total volume of containers, short- and
long-term growth in volume, rail connectivity, labor flexibility, lines of
service and post-Panamax readiness. The winner in this category is
the Port of Los Angeles due to its very large container volume, its rail
connectivity and ability to accommodate today’s large, modern
vessels. On the latter point, Los Angeles is already handling
container ships too large to pass through an expanded Panama
Canal. Long Beach is second, while New York / New Jersey,
Savannah and Tacoma round out the top five.
To produce the final JLL Seaport Index score the two components
are weighted then combined. This year’s highest ranked port is New
York / New Jersey at 129.5. Long Beach and Los Angeles follow with
scores of 108.2 and 106.0, respectively. The remaining ports fall
neatly into two distinct tier groups. A handful of those in the second
and third tiers are garnering sizeable attention through ongoing
infrastructure initiatives and have the potential to move up in our
rankings once projects come to fruition. In the case of Charleston, for
instance, the port offers strong rail connectivity, access to Western
European markets and is supported by the development of new
manufacturing facilities throughout South Carolina.
2015 PAGI Index Score methodology

Seaport Index 2015

* YTD 2015 TEUs: January through March
Source: Individual ports and JLL Research
Select top North American seaports
and property market indicators
2014
Volumes
(TEUs)
2014
annual
change
YTD 2015
(TEUs)
YTD 2015
TEUs
annual
change
Immediate
market
size
(m.s.f.)
Current
vacancy
2014 net
absorption
(m.s.f.)
YTD
2015 net
absorption
(m.s.f.)
Average
asking
rents
(NNN)
Terminal operators and comments
Port of
New York /
New Jersey
5,772,303 5.6% 1,467,551 12.8% 308.5 8.0% 1.2 0.5 $6.46
APM Terminals; Global Terminal; Maher Terminals; New York
Container Terminal; Port Newark Container Terminal; Red Hook
Container Terminal
Port of
Long Beach
6,820,806 1.3% 1,472,688 -3.3% 197.3 4.0% 5.6 0.8 $7.09
Total Terminals International; International Transportation
Services (ITS); Long Beach Container Terminal, Inc.; Pacific
Maritime Services; SSAT Long Beach LLC; SSA Terminals
Port of
Los Angeles
8,340,066 6.0% 1,823,954 -5.0% 132.1 3.3% 4.8 0.7 $7.83
West Basin Container Terminal LLC; TraPac Inc.; Port of Los
Angeles; Yusen Terminals Inc.; Seaside Transportation Services
LLC; Eagle Marine; APM Terminals; California United Terminals
Port of
Savannah
3,346,024 10.3% 910,749 18.5% 34.2 5.6% 2.6 0.1 $3.74 Georgia Ports Authority
Port of
Tacoma
2,040,023 7.8% 446,965 -4.9% 107.7 5.7% 2.1 0.4 $5.19
APM Terminals; Husky Terminal & Stevedoring, Inc.; Olympic
Container Terminal; Pierce County Terminal; Totem Ocean
Trailer Express; Washington United Terminals
Port Metro
Vancouver
2,912,928 3.1% 735,219 15.2% 77.6 4.9% 1.5 0.2 $6.83
DP World Vancouver; GCT Canada Limited Partnership; Fraser
Surrey Docks LP; GCT Canada Limited Partnership
Port of
Baltimore
778,755 10.5% 190,644 7.6% 95.3 10.4% 0.3 1.1 $4.52
Balterm; Mid-Atlantic Terminal; Ports America; Maryland
International Terminals, Inc.
Port of
Houston
1,951,088 -0.1% 525,058 11.5% 48.0 3.7% 1.3 1.3 $4.92 Port of Houston Authority
Port of
Charleston
1,944,895 21.5% 476,955 16.4% 20.4 6.8% 0.4 0.0 $4.39 South Carolina State Ports Authority
Port of
Virginia
2,393,038 7.6% 342,379 10.3% 35.7 7.7% -0.2 0.3 $4.56 Virginia International Terminals; APM Terminals
Port of
Montreal
1,402,393 4.2% 334,294 8.5% 209.7 6.1% -0.3 -0.2 $4.25
Montreal Gateway Terminals Partnership; Termont Montreal
Inc.; Empire Stevedoring Co. Ltd.
Port of
Oakland
2,394,069 2.0% 469,440 -17.4% 87.2 7.0% 1.7 0.1 $7.76
Ports America; TraPac Inc.; Seaside Transportation Services;
Total Terminals Inc., LLC; SSA Terminals, Inc.; Eagle
Marine Services
Port of
Jacksonville
936,973 1.1% 216,465 0.9% 69.0 10.6% 1.0 0.0 $3.68
Jetport; Ceres Terminals Inc.; Costal Maritime;
Marine Terminal Corp; SSA Marine (SSA Cooper LLC); APM;
Global Stevedoring / ICS Logistics; TraPac
Marine Terminal
Port of
Miami
876,708 -2.7% 240,354 14.0% 102.1 6.5% 1.8 1.4 $7.08
Seaboard Marine; South Florida Container Terminal; Port of
Miami Terminal Operating Company
Port of
Seattle
1,387,539 -12.9% 370,474 11.4% 92.2 3.5% 1.6 0.2 $6.17
Eagle Marine Services; SSA Terminals; Total Terminals
International; Port of Seattle; Northland Services

Local seaports

Port vital facts
2015 YTD volume: 1,467,551 TEUs (through March)
2014 volume: 5,772,303 TEUs
Main routes: Kill Van Kull, Newark Bay, Upper New York Bay
Trading partners: China, India, Italy, Germany, Brazil
Cranes/Post-Panamax
cranes:
61 | 47
Current channel
depth:
37 - 50 feet
Container terminals:
6 | APM, Global, Maher, New York, Newark,
Red Hook
Post-Panamax ready: Yes
Class I Rail Operators: CSX, Norfolk Southern, Canadian Pacific
Capital investments
• Construction on raising the Bayonne Bridge’s roadway is well
under way, and is expected to complete in the second half of
2016. The massive undertaking is the linchpin to preparing the
Port of New York/New Jersey for today’s modern vessels, which
cannot pass under the bridge as it stands today.
• New York/New Jersey has received a wave of new government
funding to further build out the port’s infrastructure. A $14.8
million Transportation Investment Generating Economic
Recovery (TIGER) grant from the U.S. Department of
Transportation will be used to create jobs and expand facilities at
the port.
• While hundreds of millions of dollars have already been spent by
terminal operators and governments alike, further investment in
port efficiency is still needed. GTC Terminals announced its
plans to implement a trucker appointment system to reduce
traffic and relieve long wait times, for instance.
Market conditions
• The area directly surrounding the Port of New York/New Jersey
continues to be one of the most vital industrial submarkets in
New Jersey, and accounts for the majority of all leasing activity in
the state.
• Rental rates for Class A space near the port have reached all
time highs as new construction drives asking rental rate growth
throughout the region.
Development
• Construction activity near the port has surged over the past 24
months as developers try to meet the demand for modern Class
A warehouse space.
• 2015 will be dominated by speculative development as several
new developers enter the market and rapidly break ground on a
number of mid-sized blocks of space.
• Some recently completed speculative projects have remained
vacant longer than anticipated, however. The rate at which
additional development is added will need to be monitored in the
quarters ahead.
Summary
TEUs versus port-market occupancy
Port area market
score
Terminal operating
score
119.0
Info on our scoring methodology: www.us.jll.com/PAGI
90.5
89.0%
91.0%
93.0%
95.0%
0
2,000,000
4,000,000
6,000,000
8,000,000
2008 2009 2010 2011 2012 2013 2014 2015
YTD
TEUs TEUs Port-market occupancy
129.5
Landlordleverage
Tenantleverage
Peaking
market
Falling
market
Rising
market
Bottoming
market
Oakland, Tacoma
Charleston, Montreal,
Savannah, Virginia
New York / New Jersey
Baltimore
Jacksonville
Houston, Miami,
Los Angeles, Seattle
Long Beach, Vancouver

2014 volumes
(TEUs)▼
2014 Annual change 2015 YTD TEUs
(as of March 2015)
Immediate market
size
Current vacancy Total availability
5.8 m 5.6% 1.5 m 308.5 m.s.f. 8.0% 11.4%
2014 Net
absorption
YTD 2015 net
absorption
Absorption as %
of stock
Under
Construction
Average asking
rents (NNN)
Port rank
1.2 m.s.f. 0.5 m.s.f. 0.2% 1.6 m.s.f. $6.46 1st
Bayonne Bridge
Kill Van Kull
Port Newark
Container Terminal
APM
Terminal
New York
Container Terminal
Global Marine
Terminal
Newark Liberty
International Airport
Maher
Terminal
N
Red Hook Container
Terminal

Port of Long Beach
Port vital facts
2014 volume: 6,820,806 TEUs
Main routes: San Pedro Bay
Trading partners: China, South Korea, Japan
Cranes/Post-Panamax
cranes:
66 Post-Panamax cranes
Current channel
depth:
76 feet (main channel)
Berths: 80
Container terminals: 6
Class I Rail Operators: UP, BNSF
Capital investments
• Long Beach’s $4.5 billion in capital investment over the next 10
years includes the redevelopment of existing terminals, building
new wharfs, rail line improvements and the replacement of the
General Desmond Bridge (GDB).
• The City of Long Beach Harbor Department allocated $579
million in the fiscal year of 2015 for capital outlay. Of note is
increased spending on the GDB and lower allocations on the
Middle Harbor project.
• Long Beach will spend over $252 million on the GDB during the
FY 2015. Construction is well under way, with an anticipated
2018 completion date. The new bridge will allow passage of the
world’s largest, most efficient cargo vessels.
• The port will invest over $142 million in the Middle Harbor
Redevelopment project in FY 2015. Construction is nearing
completion on what will be the greenest major container terminal
in North America.
Market conditions
• The immediate industrial market continues to tighten. Quarter-
over-quarter, the vacancy rate was down 30 basis points and
availability dropped by 70 basis points.
• Total average asking rents increased to $7.09 per square foot, up
$0.61 from this time last year.
• The labor resolution between the ILWU and PMA has restored
operations at the port. Also, cargo backlogs have been cleared.
Development
• Active construction within a 15-mile radius of the seaport totals
657,455 square feet. These projects are slated to complete by
year-end 2015.
• Two million square feet of proposed development will break
ground this year. A two-building project within a 10 mile-radius of
the port, known as ‘The Brickyard’ will total +/-1.0 million square
feet. It has a scheduled completion date of Fall 2016.
• Most projects are being constructed on a speculative basis and
are over 100,000 square feet each.
Summary
Port area market
score
Terminal operating
score
86.0
95.0
92.0%
93.0%
94.0%
95.0%
96.0%
97.0%
98.0%
0
2,000,000
4,000,000
6,000,000
8,000,000
2008 2009 2010 2011 2012 2013 2014 2015
YTD
TEUs Port-market occupancy
Landlordleverage
Tenantleverage
Peaking
market
Falling
market
Rising
market
Bottoming
market
Oakland, Tacoma
Savannah, Virginia
Baltimore
Jacksonville
108.2
Houston, Miami,
TEUs

Port of Long Beach
2014 volumes
(TEUs)▼
(as of March 2015)
Immediate market
size
6.8 m 1.3% 1.5 m 197.3 m.s.f. 4.0% 6.1%
2014 Net
absorption
YTD 2015 net
absorption
Absorption as %
of stock
Under
Construction
Average asking
rents (NNN)
Port rank
5.6 m.s.f. 0.8 m.s.f. 0.4% 0.7 m.s.f. $7.09 2nd
N
N
Pier S Container Terminal
Development
Middle Harbor
Redevelopment
Gerald Desmond Bridge
Pier G Improvements
Anaheim/Santa Fe Intersection
Improvement
SSA / Pier A
(MSC/ZIM)
TTI / Pier T (Hanjin)
PCT / Pier J
(COSCO)
ITS / Pier G (K Line)
SSA / Pier C (Matson)
LBCT / Pier F (OOCL)
On-Dock Rail Support
Facility Development

Port of Los Angeles
Port vital facts
2014 volume: 8,340,066 TEUs
Main routes: San Pedro Bay
Trading partners: China/Hong Kong, Japan, South Korea
Cranes/Post-Panamax
cranes:
79 | 69
Current channel
depth:
53 feet (main channel)
Berths: 57 (30 from the container terminals)
Class I Rail Operators: UP, BNSF
Capital investments
• The port is in the middle of a five-year $1.2 billion capital
investment program intended to help maintain its position as the
busiest containerized cargo seaport in North America.
• Construction work continues to enhance the TraPac terminal:
This $274 million project will extend the terminal’s wharves,
deepen water depths at berths 144-147, create a new on-dock
rail facility and include automated facilities.
• China Shipping’s terminal expansion, which nearly doubles its
size to 142 acres, is now complete. The South Wilmington Grade
Separation Bridge, a $84 million project that improves the flow of
goods and reduces truck traffic times to and from the port, also
came on line.
• Funding continues for other major roadway improvement projects
near the port complex. These projects, representing over $100
million in infrastructure investment, will eliminate bottlenecks and
separate car and truck traffic.
• Additional projects include increasing terminal capacity and
efficiency by making terminals automated, increasing access to
the onshore electrical grid for docking container ships, as well as
creating more on-dock and near-dock rail facilities.
Market conditions
• The port-immediate industrial market continues to tighten and
remains very landlord-favorable.
• The vacancy rate is at a cyclical low, and this, in turn, has led to
rent and sales price increases.
Development
• A total of 657,455 square feet is under construction within a 15-
mile radius of the port.
• Roughly 2.0 million square feet of primarily speculative
development will break ground this year.
• High land prices and a lack of suitable sites is constraining new
development. Tenant demand remains high, and redevelopment
of older inventory is expected in the quarters ahead.
Summary
Port area market
score
Terminal operating
score
78.0
103.5
88.0%
92.0%
96.0%
100.0%
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
2008 2009 2010 2011 2012 2013 2014 2015
YTD
106.0
Landlordleverage
Tenantleverage
Peaking
market
Falling
market
Rising
market
Bottoming
market
Oakland, Tacoma
Savannah, Virginia
Baltimore
Jacksonville
Houston, Miami,
TEUs

Port of Los Angeles
2014 volumes
(TEUs)▼
(as of March 2015)
Immediate market
size
8.3 m 6.0% 1.8 m 132.1 m.s.f. 3.3% 5.6%
2014 Net
absorption
YTD 2015 net
absorption
Absorption as %
of stock
Under
Construction
Average asking
rents (NNN)
Port rank
4.8 m.s.f. 0.7 m.s.f. 0.5% 0.7 m.s.f. $7.83 3rd
NN
Container Terminal
Redevelopment
Pier A
Replacement Yard
TICTF Expansion
(Rail Upgrades)
Pier 400 ICTF
Expansion
(Rail Upgrades)
Main Line Rail
Improvements
California United
Container Terminal
APM TerminalsEagle Marine
Services Container
Terminal
Evergreen Container
Terminal
Yusen Container
Terminal
Yang Ming
Container Terminal
TraPac
Container Terminal
China Shipping
Terminal
Expansion

Port of Savannah
Port vital facts
2015 YTD volume: 910,749 TEUs (through March)
2014 volume: 3,346,024 TEUs
Main routes: Savannah River
Trading partners: NE Asia, Mediterranean, SE Asia, N Europe
Cranes/Post-Panamax
cranes:
33 | 23
Current channel
depth:
42 feet (at MLW)
Berths: 18
Container terminals: 2 | Garden City & Ocean
Post-Panamax ready: No (2018 is the estimate)
Class I Rail Operators: CSX, Norfolk Southern
Capital investments
• After much time spent in state and federal legislation for funding,
the Savannah Harbor Expansion Project (SHEP) is now nearing
the construction phase: Dredging the harbor to 47 feet deep and
expanding it to 49 feet wide, to allow passage of larger cargo
vessels.
• The Georgia Port Authority (GPA) recently approved $141.8
million for capital improvements, including infrastructure for
cranes and more rail capacity. Other funds will support property
development to modernize outdated equipment and facilities.
Market conditions
• Savannah is the fourth busiest container port in the country,
including the second busiest container exporter in the United
States, at 13.3 million tons.
• Year-to-date container volume is up nearly 13.0 percent. Ro-Ro
and break bulk traffic is also up, GPA expects continual growth in
the future, especially as the population in the Southeast region
grows and with SHEP under way in response to the Panama
Canal expansion.
• Demand for warehouse and distribution space is increasing, with
corresponding vacancy rates dropping down to 5.6 percent, a
40.0 percent decrease year-over-year.
Development
• Savannah is a quickly evolving transshipment corridor thanks to
increasing TEU volume, and this is prompting more industrial
real estate development. Nearly 20.0 percent of the market's
stock was built from 2008-2014.
• Over 500,000 square feet in new industrial product was built in
2014. This year is off to a steady start, with roughly 83,000
square feet delivered, and another 335,000 square feet
under way.
• Another 14.7 million is proposed; one project of which is OA
Logistics’ e-commerce fulfillment center, totaling 1.1 million
square feet. OA is set to break ground this year, and the new
facility will be in addition to their existing 679,000-square-foot
distribution center.
Summary
Port area market
score
Terminal operating
score
57.8
70.0
60.0%
70.0%
80.0%
90.0%
100.0%
0
1,000,000
2,000,000
3,000,000
4,000,000
2008 2009 2010 2011 2012 2013 2014 2015
YTD
78.4
Landlordleverage
Tenantleverage
Peaking
market
Falling
market
Rising
market
Bottoming
market
Oakland, Tacoma
Savannah, Virginia
Baltimore
Jacksonville
Houston, Miami,

Port of Savannah
2014 volumes
(TEUs)▼
(as of March 2015)
Immediate market
size
3.3 m 10.3% 0.9 m 34.2 m.s.f. 5.6% 7.9%
2014 Net
absorption
YTD 2015 net
absorption
Absorption as %
of stock
Under
Construction
Average asking
rents (NNN)
Port rank
2.6 m.s.f. 0.1 m.s.f. 0.3% 0.3 m.s.f. $3.74 4th
Savannah River
Ocean Terminal
N
Argyle Island
Turning Basin
Mason Intermodal
Container Transfer
Facility
International Paper
company
Talmadge Memorial
Bridge - 185’ MHW
air draft
Savannah/Hilton
Head International
Airport
Garden City Terminal

Port of Tacoma
Port vital facts
2014 volume: 2,040,023 TEUs
Main routes: Puget Sound
Trading partners: Asia, South America, North America, Europe
Cranes/Post-Panamax
cranes:
31 | 27
Current channel
depth:
50 feet (at MLW)
6 | APM, Husky, Olympic Container, Evergreen,
TOTE, WUT
Class I Rail Operators: BNSF, UPRR
Capital investments
• In late 2014, the Ports of Seattle and Tacoma announced they
will form an alliance to collectively manage all marine cargo
terminals. By pooling efforts, the hope is to attract additional TEU
volume and grow jobs.
• The Port of Tacoma completed a project to extend the berth at
their Washington United Terminals (WUT) by 600 feet to support
the addition of two new Super-post-Panamax cranes. This brings
the berth’s crane count to six.
• The port completed the Tideflats Area Transportation Study to
identify and prioritize future transportation needs for the growth of
freight-related traffic in the Tacoma Tideflats area.
• The port is developing a public access plan to identify specific
needs and opportunities to provide the public with access to the
shoreline. Implementation of the plan is ongoing.
Market conditions
• The Port of Tacoma has a notable stock of industrial facilities in
the immediate area, but most of the warehouse/distribution
facilities in the greater market are located a few miles away in
Sumner and the Kent Valley.
• The industrial vacancy in the immediate vicinity of the port is 5.7
percent. Regionally, port-driven areas such as Sumner, Puyallup
and the Kent Valley have the bulk of today’s tenant activity and
new construction.
• Rents have been increasing for the past 24 months and are
expected to continue to rise through 2016.
• Logistics, aerospace and consumer goods companies are among
the market’s most active industries.
Development
• Port of Tacoma is the primary land owner in the area.
• Currently, of the nine major warehouse/distribution and
manufacturing projects under construction in the Puget Sound
area, eight of them, totaling 3.5 million square feet, are located
within 15 miles of the Port of Tacoma. The vast majority of which
are in Pierce County, where the port is located.
Summary
Port area market
score
Terminal operating
score
54.0
73.5
86.0%
88.0%
90.0%
92.0%
94.0%
96.0%
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2008 2009 2010 2011 2012 2013 2014 2015
YTD
77.2
Landlordleverage
Tenantleverage
Peaking
market
Falling
market
Rising
market
Bottoming
market
Oakland, Tacoma
Savannah, Virginia
Baltimore
Jacksonville
Houston, Miami,

Port of Tacoma
APM Terminal
Downtown
Tacoma
Commencement Bay
Evergreen Terminal
South Intermodal Yard
Tacoma Rail Yard
BNSF Tacoma Rail Yard
Interstate 5
Evergreen Intermodal Rail Yard
Washington United Terminal
Hyundai Intermodal Rail Yard
North Intermodal Rail Yard
Husky & Stevedoring Terminal
Olympic Container
Terminal
TOTE Terminal
UPRR Fife Rail Yard
N
2014 volumes
(TEUs)▼
(as of March 2015)
Immediate market
size
2.0 m 7.8% 0.4 m 107.7 m.s.f. 5.7% 7.7%
2014 Net
absorption
YTD 2015 net
absorption
Absorption as %
of stock
Under
Construction
Average asking
rents (NNN)
Port rank
2.1 m.s.f. 0.4 m.s.f. 0.7% 3.5 m.s.f. $5.19 5th

Port Metro Vancouver
Port vital facts
2014 volume: 2,912,928 TEUs
Main routes: Burrard Inlet, Roberts Bank, Fraser River
Trading partners:
China, Hong Kong, Japan, Korea, Singapore,
Taiwan, Indonesia, Brazil, India, United States
Cranes/Post-Panamax
cranes:
26 | 20
Current channel
depth:
65+ feet
Centerm, GCT Deltaport, Fraser Surrey Docks,
GCT Vanterm
Class I Rail Operators:
CN Rail (CN), Canadian Pacific Railway (CP)
and Burlington Northern Sana Fe (BNSF)
Capital investments
• Port Metro Vancouver (PMV) is Canada’s largest port and trades
over $170 billion in goods each year with more than 160 trading
economies.
• The demand for import and export of goods through PMV is
increasing each year. It is expected that container traffic through
Canada’s west coast ports will more than double in the next
15 years.
• PMV has proposed an expansion at Roberts Bank in Delta, B.C.
known as the Roberts Bank Terminal 2 project; this new three-
berth container terminal will increase the port’s annual container
capacity by 2.4 million TEUs.
• PMV’s Deltaport Terminal, Road and Rail Improvement Project
will construct an overpass on the Roberts Bank causeway,
reconfigure and add additional rail tracks, as well as make road
improvements on Deltaport Way.
• The completion of a $1.3 billion project known as the South
Fraser Perimeter Road (SFPR) in 2014 has facilitated the
movement of goods and services between major industrial nodes
throughout Metro Vancouver.
Market conditions
• Tenants are actively seeking the next generation of distribution
facilities. This flight-to-quality includes record high ceiling
heights, extra large maneuvering areas, ample trailer parking,
efficient column spacing and higher loading door counts.
• Large bay deals (100,000 square feet and greater) dominated in
2014 with 13 transactions in all; the most recorded in Metro
Vancouver over the last five years.
Development
• By the end of 2014, a speculative development known as
Boundary Bay Industrial Park in Delta was fully leased (440,000
square feet). Phase 2 is under construction (430,000 square feet)
with completion set for summer 2015.
• Active construction within a 15-mile radius of PMV totals 1.2
million square feet.
• The appeal of excessive speculative development in Delta has
been driven by proximity to the port, the U.S. border and the
unveiling of the South Fraser Perimeter Road.
Summary
TEUs versus port-market occupancy*
90.0%
92.0%
94.0%
96.0%
98.0%
100.0%
0
1,000,000
2,000,000
3,000,000
4,000,000
2008 2009 2010 2011 2012 2013 2014 2015
YTD
* Includes industrial facilities below 50,000 s.f.
Port area market
score
Terminal operating
score
56.0
70.0
77.2
Landlordleverage
Tenantleverage
Peaking
market
Falling
market
Rising
market
Bottoming
market
Oakland, Tacoma
Savannah, Virginia
Baltimore
Jacksonville
Houston, Miami,
TEUs

Port Metro Vancouver
2014 Volumes
(TEUs)▼
(as of March 2015)
Immediate market
size
2.9 m 3.1% 0.7 m 77.6 m.s.f. 4.9% 5.5%
2014 Net
absorption
YTD 2015 net
absorption
Absorption as %
of stock
Under
Construction
Average asking
rents (NNN)
Port rank
1.5 m.s.f. 0.2 m.s.f. 0.2% 1.2 m.s.f. $6.83 6th
Fraser Surrey Docks -
Multi-purpose marine
terminal
Deltaport -
Container terminal
Vanterm -
Container terminalCenterm -
Container terminal

Port of Baltimore
Port vital facts
2014 volume: 778,755 TEUs
Main routes: Chesapeake Bay
Trading partners:
China, Netherlands, Japan, Brazil, South Korea,
Canada
Cranes/Post-Panamax
cranes:
30 | 4
Current channel
depth:
50 feet (at MLW)
Berths: 29
Container terminals: 2 | Seagirt, Dundalk
Capital investments
• Ports America Chesapeake has invested $105 million in
improvements, including a new 50-foot berth and four post-
Panamax cranes at Seagirt Marine Terminal.
• The port continued to struggle to integrate operations into CSX’s
National Gateway double-stack network. In 2012, an intermodal
site had been chosen in Southwest Baltimore, but (after
extended negotiations between CSX, the state of Maryland and
Baltimore City) plans were dropped amidst objections from the
neighboring community.
• Efforts for bringing double-stack capacity to the Port of Baltimore,
which is constrained by CSX’s Howard Street Tunnel, have
shifted to introducing a freight component to the replacement of
the 140-year-old B&P Tunnel.
Market conditions
• Amazon’s expansion into Baltimore City with nearly 1.4 million
square feet of net new occupancy helped to drive absorption and
bring occupancy for the port-market to 89.6 percent.
• Following the increase of toll rates for crossing the Baltimore
Harbor, the port-market gained increased interest from tenants in
the Baltimore/Washington Corridor, including B&E Storage. The
paper distributor took down 294,000 square in Port Breeze
Business Center at 2500 Broening Highway.
Development
• Development activity is set to increase in the port-market with
several projects expected to break ground in the coming year,
including the redevelopment of the former Sun Products
manufacturing plant, which was recently purchased by
Chesapeake Real Estate Group and USAA. Initial plans call for
up to 500,000 square feet of new space, along with 500,000
square feet of existing warehouse space.
• Sparrows Point Terminal, one of the largest privately owned
logistics and manufacturing multimodal sites in North America, is
undergoing redevelopment. The 3,100-acre, former steel
manufacturing facility features a deep-water port, connections to
two Class I railroads and immediate access to I-695.
Summary
Port area market
score
Terminal operating
score
58.3
58.0
88.0%
88.5%
89.0%
89.5%
90.0%
0
200,000
400,000
600,000
800,000
1,000,000
2008 2009 2010 2011 2012 2013 2014 2015
YTD
74.0
Landlordleverage
Tenantleverage
Peaking
market
Falling
market
Rising
market
Bottoming
market
Oakland, Tacoma
Savannah, Virginia
Baltimore
Jacksonville
Houston, Miami,
TEUs

Port of Baltimore
2014 volumes
(TEUs)▼
(as of March 2015)
Immediate market
size
0.8 m 10.5% 0.2 m 95.3 m.s.f. 10.4% 15.8%
2014 Net
absorption
YTD 2015 net
absorption
Absorption as %
of stock
Under
Construction
Average asking
rents (NNN)
Port rank
0.3 m.s.f. 1.1 m.s.f. 1.1% 0.7 m.s.f. $4.52 7th
N
Fairfield Marine Terminal
Dundalk Marine Terminal
Seagirt Marine Terminal
Rukert Marine Terminal
CSX Marine Terminal
Locust Point

Port of Houston
Port vital facts
2014 volume: 1,951,088 TEUs
Main routes: Gulf of Mexico
Trading partners:
Mexico, Venezuela, Saudi Arabia, Germany,
Brazil, China, Belgium, Algeria and Netherlands
Cranes/Post-Panamax
cranes:
41 | 13
Current channel
depth:
40 feet
Berths: 30
Container terminals: 2 | Barbours Cut and Bayport
Post-Panamax ready: No
Class I Rail Operators: Union Pacific, BNSF, Kansas City Southern
Capital investments
• The Port of Houston Authority expects to commit $275 million for
various capital projects. Approximately $184 million will be
allocated to container terminals for ongoing development of
Bayport and for modernization at Barbours Cut; another $35
million will be put toward improvements at the general cargo and
bulk terminals in the Turning Basin area.
• The remaining 2015 capital budget funds will be used for railroad
improvements, channel development, port security, building
renovations and information technology.
Market conditions
• Goods exported from Texas, many of which travel through the
Port of Houston, reached a record $289 billion in 2014. The three
biggest sectors were petroleum and coal products ($59.1 billion),
computer and electronics products ($46.6 billion) and chemicals
($46.1 billion), according to the Department of Commerce’s
International Trade Administration.
• The Houston area is expected to see a wave of new exports in
the near future. With the Houston Ship Channel and
southeastern Texas already seeing record traffic – thanks to the
ongoing shale boom and the upcoming manufacturing surge –
condensate exports and the growing debate over ending the
crude export ban may lead to more tankers entering the port.
Development
• The Port Authority plans to undertake significant infrastructure
improvements in the next few years to ensure the Port of
Houston is able to accommodate Post-Panamax vessels.
• Regional population growth and increased traffic through an
expanded Panama Canal may result in higher cargo volumes for
Houston—the ability to accommodate larger vessels will enhance
the port’s competitiveness.
Summary
Port area market
score
Terminal operating
score
57.5
56.0
84.0%
88.0%
92.0%
96.0%
100.0%
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2008 2009 2010 2011 2012 2013 2014 2015
YTD
72.7
Landlordleverage
Tenantleverage
Peaking
market
Falling
market
Rising
market
Bottoming
market
Oakland, Tacoma
Savannah, Virginia
Baltimore
Jacksonville
Houston, Miami,

Port of Houston
2014 volumes
(TEUs)▼
(as of March 2015)
Immediate market
size
2.0 m -0.1% 0.5 m 48.0 m.s.f. 3.7% 4.9%
2014 Net
absorption
YTD 2015 net
absorption
Absorption as %
of stock
Under
Construction
Average asking
rents (NNN)
Port rank
1.3 m.s.f. 1.3 m.s.f. 2.7% 1.0 m.s.f. $4.92 8th
Barbour’s Cut
Terminal
Union Pacific
Railroad
Care Terminal
Bulk Materials
Handling Plant
Woodhouse
Terminal
Turning Basin
Terminal (and
Executive Bldg.)
Bayport
Terminal
N

Port of Charleston
Port vital facts
2014 volume: 1,944,895 TEUs
Main routes: Cooper & Wando Rivers via Charleston Harbor
Trading partners:
N Europe, NE Asia, Middle East, South America,
Indian Subcontinent and Mediterranean
Cranes/Post-Panamax
cranes:
20 | 20
Current channel
depth:
45 feet (at MLW)
Container terminals: 2 | Wando Welch, North Charleston
Capital investments
• TEU cargo volumes increased by 21.0 percent in 2014. To keep
up with this growth, the Port of Charleston is investing heavily in
infrastructure improvement projects.
• A new container terminal will be built at the former Charleston
Navy Base. More than $2.2 million was approved for preliminary
work, and the project’s first phase will likely finish by 2019.
• The Post-45 Harbor Deepening project proposes to dredge
Charleston’s channel from 45 feet to as much as 52 feet to
accommodate larger vessels. If executed, the project has an
anticipated 2019 completion date, and will make Charleston even
more competitive with eastern seaboard ports.
Market conditions
• Gradual rent growth and tightening market fundamentals, fueled
by significant leasing activity over the past several quarters, have
further propelled Charleston as a landlord-favorable market. The
port’s ability to handle increased container traffic and attract new
occupiers, like Volvo Car Corporation, is a testament to
Charleston’s evolving industrial market strength.
Development
• Through aggressive economic development efforts and major
capital investments from global firms like BMW, Michelin,
Bridgestone and Northern Tool, South Carolina’s freight base
has expanded exponentially in the past few years.
• In one of the biggest wins for the state in 2015, Volvo announced
that it will build its first North American manufacturing plant near
Ridgeville along Interstate 26 in Berkeley County. Accessibility to
international markets via seaport proximity was critical to the
automotive manufacturer.
• Volvo’s new plant comes with an incentive package of nearly
$204 million and the company will invest nearly $500 million and
create over 2,000 jobs over the next decade. The plant will build
close to 100,000 vehicles/year initially.
• Earlier this year, Daimler AG announced it will build a campus in
North Charleston to manufacture its popular Sprinter vans.
Summary
Port area market
score
Terminal operating
score
34.5
84.0
80.0%
85.0%
90.0%
95.0%
100.0%
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2008 2009 2010 2011 2012 2013 2014 2015
YTD
67.8
Landlordleverage
Tenantleverage
Peaking
market
Falling
market
Rising
market
Bottoming
market
Oakland, Tacoma
Savannah, Virginia
Baltimore
Jacksonville
Houston, Miami,

Port of Charleston
N
James B. Edwards Bridge,
air draft 155 feet
Arthur Ravenel Jr. Bridge,
air draft 186 feetColumbus Street Terminal
Veterans Terminal
Charleston Air Force Base
North Charleston Terminal
Union Pier Terminal
Wando Welch Terminal
Future container terminal
CSX & Norfolk Southern
intermodal rail yard
2014 volumes
(TEUs)▼
(as of March 2015)
Immediate market
size
1.9 m 21.5% 0.5 m 20.4 m.s.f. 6.8% 11.3%
2014 Net
absorption
YTD 2015 net
absorption
Absorption as %
of stock
Under
Construction
Average asking
rents (NNN)
Port rank
0.4 m.s.f. 0.0 m.s.f. 0.0% 0.0 m.s.f. $4.39 9th

Port of Virginia
Port vital facts
2014 volume: 2,393,038 TEUs
Main routes: James River, Chesapeake Bay, Atlantic Ocean
Trading partners:
Northern Europe, Northeast Asia, South
America, Mediterranean
Cranes/Post-Panamax
cranes:
30 | 27
Current channel
depth:
50 feet (at MLW), authorized to 55 feet
Berths: 7
Container terminals: 4 | NIT, NNMT, APMT, PMT
Capital investments
• The proposed $1.3 billion Craney Island expansion will boost
cargo handling capabilities to 2.5 million TEUs and create an
additional terminal at the Port of Virginia by 2025.
• The Midtown Tunnel expansion and MLK Highway extension are
expected to open in December of 2016 and alleviate congestion
between Portsmouth Marine Terminal and Norfolk International
Terminal.
• Rail underpass/grade separations at Hampton Boulevard and
Freeman Avenue will be finished this year and eliminate the need
to interrupt vehicular traffic due to railway movement to and from
the port terminals.
• Both CSX’s National Gateway and Norfolk Sothern's Heartland
Corridor have completed over $1 billion in rail upgrades,
reducing bottle necks and adding double-stack capabilities.
Market conditions
• Only one high-bay warehouse over 200,000 square feet is
available (2600 International Parkway). Large users are
gravitating toward build-to-suits due to limited space options.
• Developers remain focused on land acquisitions, but are still
cautiously evaluating speculative product despite Class A’s
availability rate falling to 3.3 percent in the first quarter.
• Demand from trucking companies seeking cross-dock facilities is
increasing. This is leading to build-to-suits and owner-user sales.
On-terminal cargo is being pushed to third-party warehouses due
to on-dock space constraints.
Development
• Friant and Associates committed to a 357,000-square-foot build-
to-suit; this is the company’s first East Coast distribution center.
• Target commenced on a $50 million expansion to its existing
facility in Suffolk.
• FedEx completed a 198,839-sqauare-foot distribution facility
in Hampton.
Summary
Port area market
score
Terminal operating
score
32.5
73.5
88.0%
89.0%
90.0%
91.0%
92.0%
93.0%
0
600,000
1,200,000
1,800,000
2,400,000
3,000,000
2008 2009 2010 2011 2012 2013 2014 2015
YTD
62.2
Landlordleverage
Tenantleverage
Peaking
market
Falling
market
Rising
market
Bottoming
market
Oakland, Tacoma
Savannah, Virginia
Baltimore
Jacksonville
Houston, Miami,

Port of Virginia
Craney Island Expansion
Portsmouth Marine
Terminal (PMT)
Newport News Marine
Terminal (NNMT)
Virginia International
Gateway Terminal (VIG)
Norfolk International Terminal (NIT)
Chesapeake Bay
James River
Norfolk Southern Rail Depot
CSX Downtown rail station
Midtown Tunnel
Expansion
N
2014 volumes
(TEUs)▼
(as of March 2015)
Immediate market
size
2.4 m 7.6% 0.3 m 35.7 m.s.f. 7.7% 9.0%
2014 Net
absorption
YTD 2015 net
absorption
Absorption as %
of stock
Under
Construction
Average asking
rents (NNN)
Port rank
-0.2 m.s.f. 0.3 m.s.f. 0.8% 0.2 m.s.f. $4.56 10th

Port vital facts
2014 volume: 1,402,939 TEUs
Main routes: St. Lawrence River
Trading partners: Over 140 countries across the globe
Cranes/Post-Panamax
cranes:
12 | 3
Current channel
depth:
35 - 37 feet
5 | Cast, Racine (MGT), Maisonneuve, Viau
(Termont), Bickerdike
Post-Panamax ready: No*
Class I Rail Operators: CN Rail (CN), Canadian Pacific Railway (CP)
Capital investments
• Continued growth in container movement, particularly from
developing countries and the need for additional infrastructure to
accommodate even larger vessels, has prompted a number of
improvement projects in and around the Port of Montreal.
• Upon completion, the new Viau (Termont) container terminal will
be Post-Panamax ready. Estimated at $67 million, the project will
be carried out through 2015-2018 and will increase the port’s
handling capacity from 600,000 TEUs to more than 2.1 million
TEUs. The Viau container terminal will be operated by Termont
Montreal Inc., which has been operating the Maisonneuve
terminal since 1987.
• The Contrecoeur container terminal will be executed in phases
over a 10-year period. The site will serve as an extension to the
Port of Montreal and will be able to accommodate a container
terminal with a capacity of 3.5 million TEUs when fully deployed.
Phase I is scheduled to be completed by 2021 with an annual
capacity of 1.1 million TEUs.
Market conditions
• Strong demand for industrial space in close proximity to the Port
of Montreal has kept vacancy low while absorption and asking
rental rates are generally higher compared to the Greater
Montreal industrial market. This trend is expected to continue as
the port expands its infrastructure and capabilities over the next
10 years.
Development
• A lack of available land on the Island of Montreal is restraining
new industrial development in proximity to the Port of Montreal.
• Demand for modern industrial buildings with higher ceiling
heights is forcing developers to look at off-island options. As a
result, submarkets such as the North-Shore, South-Shore and
Vaudreuil-Dorion are seeing a rise in new industrial projects.
• Current buildings under construction within a 15-mile radius of
the Port of Montreal total 503,480 square feet.
Summary
*Can accommodate Post-Panamax vessels that are ±75 percent loaded, however
89.0%
90.0%
91.0%
92.0%
93.0%
94.0%
95.0%
0
400,000
800,000
1,200,000
1,600,000
2008 2009 2010 2011 2012 2013 2014 2015
YTD
TEUs TEUs Port-market occupancy*
* Includes industrial facilities below 50,000 s.f.
Port area market
score
Terminal operating
score
54.0
29.0
59.4
Landlordleverage
Tenantleverage
Peaking
market
Falling
market
Rising
market
Bottoming
market
Oakland, Tacoma
Savannah, Virginia
Baltimore
Jacksonville
Houston, Miami,
Port of Montreal

Port of Montreal
2014 Volumes
(TEUs)▼
(as of March 2015)
Immediate market
size
1.4 m 4.2% 0.3 m 209.7 m.s.f. 6.1% 7.3%
2014 Net
absorption
YTD 2015 net
absorption
Absorption as %
of stock
Under
Construction
Average asking
rents (NNN)
Port rank
-0.3 m.s.f. -0.2 m.s.f. 0.0% 0.5 m.s.f. $4.25 11th
BickerdikeTerminal
LaurierTerminal
Hochelaga Terminal
Racine (MGTP) Terminal
Maisonneuve (Termont) Terminal
Cast (MGTP) Terminal
N

Port of Oakland
Port vital facts
2014 volume: 2,394,069 TEUs
Main routes: Asia / Pacific
Trading partners: China, Taiwan, Japan
Cranes/Post-Panamax
cranes:
36 | 30
Current channel
depth:
50 feet (at MLW)
Berths: 18 (deep-water)
Container terminals: 8 | Ports America, STS/Evergreen, SSAT
Class I Rail Operators: BNSF, Union Pacific
Capital investments
• Work continues on the first phase of the Oakland Global Trade
and Logistics Center, including construction of a new bulk-marine
terminal and grading for a new port rail yard to serve the
anticipated growth in new and existing port business.
• The port is working on adding electronic monitoring to measure
wait times at gates for trucks, providing information to drivers to
help them avoid peak times.
• Phase II of the master plan includes an expanded rail yard, a
new intermodal rail terminal and trade and logistics facilities.
Significant public investment is still required before Phase II can
commence and will be contingent on successful completion of
Phase I in 2017 and expected increased volume through the port.
Market conditions
• Despite slowdowns during January and February due to a labor
dispute, trade volume during March was up slightly from the year
before. The port has instituted Saturday operations and off-
terminal cargo areas to cope with the cargo backlog. While
slowdowns created inconveniences for local businesses, it has
not appeared to have any discernable effect on real estate.
• Occupancy within a 15-mile radius of the port ticked up to 92.9
percent by year-end 2014, the highest level in five years.
Available space continued to decline, leaving few spaces for
tenants to choose from within the port’s immediate market area.
• With new buildable industrial land at a minimum, landlords
continue to take advantage of current market conditions and are
driving asking rental rates above pre-recession levels.
Development
• KTR is finalizing construction on Phase II of Pinole Point
Business Park in Richmond, totaling 474,000 square feet. The
dually leased project will be delivered in the second quarter of
2015. McShane Development is building Phase I of a multi-
building development in Hayward.
• Leasing activity near the port remains robust with Coaster
Company of America signing a new lease for 232,881 square
feet at 8350 Pardee Drive and Purcell Murray signing a new
lease for 192,680 square feet at 7200-7240 Edgewater Drive.
• Prologis expects to deliver buildings in the Oakland Army Base
Redevelopment during the second quarter of 2016.
Summary
Port area market
score
Terminal operating
score
36.5
58.5
85.0%
87.0%
89.0%
91.0%
93.0%
95.0%
0
600,000
1,200,000
1,800,000
2,400,000
3,000,000
2008 2009 2010 2011 2012 2013 2014 2015
YTD
59.0
Landlordleverage
Tenantleverage
Peaking
market
Falling
market
Rising
market
Bottoming
market
Oakland, Tacoma
Savannah, Virginia
Baltimore
Jacksonville
Houston, Miami,

Port of Oakland
Total Terminals
International (Hanjin)
Oakland International
Container Terminal (SSAT)
Global Gateway Central
Terminal (APL)
Charles P. Howard
Terminal (Matson)
BNSF Intermodal Yard
TraPac Terminal
Ben E. Nutter Terminal
(STS/Evergreen)
Union Pacific
Intermodal Yard
Berths 33-34
Ports America Outer
Harbor Terminal
Oakland Army Base
Redevelopment
2014 volumes
(TEUs)▼
(as of March 2015)
Immediate market
size
2.4 m 2.0% 0.5 m 87.2 m.s.f. 7.0% 9.5%
2014 Net
absorption
YTD 2015 net
absorption
Absorption as %
of stock
Under
Construction
Average asking
rents (NNN)
Port rank
1.7 m.s.f. 0.1 m.s.f. 0.1% 0.5 m.s.f. $7.76 12th
Oakland Global Trade
and Logistics Center
N

Port vital facts
Main routes:
21-mile stretch of the St. Johns River connects
to all terminals
Trading partners:
Puerto Rico, China, Japan, Finland, Brazil,
Saudi Arabia, Venezuela, Netherlands, Vietnam,
Turkey
Cranes/Post-Panamax
cranes:
18 | 2
Current channel
depth:
36 - 40 feet
Berths: 13 | Tallyrand-6, Dames Point-4, Blount Island-3
Container terminals: 3 | Tallyrand, Blount Island, Dames Point
Class I Rail Operators:
CSX, Norfolk Southern, Florida East Coast
Railway
78.0%
82.0%
86.0%
90.0%
94.0%
0
200,000
400,000
600,000
800,000
1,000,000
2008 2009 2010 2011 2012 2013 2014 2015
YTD
Landlordleverage
Tenantleverage
Peaking
market
Falling
market
Rising
market
Bottoming
market
Oakland, Tacoma
Savannah, Virginia
Baltimore
Jacksonville
Houston, Miami,
Port area market
score
Terminal operating
score
41.3
49.0
58.5
Capital investments
• The signing of the Water Resources Reform and Development
Act (WRRDA) by President Obama has cleared the way for
the $684 million St. Johns River dredging project, which will
deepen the river to a depth of 47 feet. Engineering and design
work is already under way with construction beginning as soon
as early 2016.
• The dredging project is expected to take 18 months and will allow
fully loaded New Panamax class vessels to call on JAXPORT.
• The $30 million intermodal container transfer facility at Dames
port is currently under construction, and, upon completion, the
project will facilitate the direct transfer of containers between
vessels and trains. Construction started in May 2014, and is
slated for delivery in the second half of 2015.
Market conditions
• Industrial product around the port area saw a pickup in activity in
2014, recording just over 1.0 million square feet of positive net
absorption, which amounts to just over 1.0 percent of the total
industrial stock. This trend of positive net absorption is expected
to continue into 2015.
• Container volumes at the port grew by 1.1 percent from the
previous fiscal year and concluded 2014 with 936,973 TEUs.
Development
• TOTE Inc began construction last February on the world’s first
LNG-powered container ship, which will use JAXPORT as a
home port. The new Marlin Class container ship, expected to
launch in late 2015, will traverse the Puerto Rico trade route from
Jacksonville.
• With the help of $100 million in federal and state funds,
JAXPORT has begun upgrades to wharves, on-dock rail and
terminal pavement areas.
Summary

N
Jacksonville
Downtown
Talleyrand
Marine
Terminal
Naval Station
Mayport
Blount Island Marine
Terminal
JAXPORT Blount
Island and Dames
Point Operation
TracPac Container
Terminal at Dames
Point
Cruise Terminal
2014 volumes
(TEUs)▼
(as of March 2015)
Immediate market
size
0.9 m 1.1% 0.2 m 69.0 m.s.f. 10.6% 16.0%
2014 Net
absorption
YTD 2015 net
absorption
Absorption as %
of stock
Under
Construction
Average asking
rents (NNN)
Port rank
1.0 m.s.f. 0.0 m.s.f. 0.0% 0.1 m.s.f. $3.68 13th

Port of Miami
Port vital facts
Main routes:
Main Ship Channel, Fisherman’s Channel,
Government Cut
Trading partners:
China, Honduras, Hong Kong, Guatemala,
Dominican Republic
Cranes/Post-Panamax
cranes:
12 | 2
Current channel
depth:
28 - 42 feet (at MLW). Upon completion:
50 - 52 feet (by 2015)
3 | Seaboard Marine, South Florida Container,
Port of Miami Terminal Operating Company
Class I Rail Operators: Florida East Coast Railways
Capital investments
• PortMiami’s ongoing capital expenditure totals over $2.0 billion
and includes dredging, four new cranes, a new tunnel and other
enhancements to facilitate the anticipated trade increase when
the port becomes Post-Panamax ready.
• As part of these improvements, the $205 million dredging project
is currently under way and is expected complete in the second
half of this year. This will make PortMiami one of few East Coast
seaports able to accommodate 13,000-14,000 TEU vessels —
well ahead of an expanded Panama Canal’s debut.
• The PortMiami Access Tunnel (MAT), which completed in 2014,
is one mile long and provides access to I-395 via Watson Island,
alleviating truck congestions along Biscayne Boulevard. The
tunnel averages 16,000 vehicles per day.
• Florida East Coast Railway’s (FECR) reactivated freight rail at
the port; the rail system links PortMiami to 70.0 percent of the
U.S. population within four days.
Market conditions
• Amidst strong employment gains and construction growth,
Miami-Dade’s industrial market dropped to a new cyclical low.
• Consumer goods, logistics companies and food & beverage firms
are the most prevalent tenants in the market.
• As the residential and retail development pipeline heats up, the
market is seeing more building supply-related firms expand and
lease industrial space.
Development
• Airport West and Medley are the epicenter of new development
with roughly 1.1 million square feet under construction. Active
owner/developers include Flagler Global Logistics, Liberty
Property Trust, Income Industrial Trust, Prologis and DCT
Industrial Trust. Collectively, this group has delivered over 3.4
million square feet to the market over the previous 24 months, of
which 2.3 million is more than 90.0 percent leased.
Summary
Port area market
score
Terminal operating
score
35.5
54.5
85.0%
87.0%
89.0%
91.0%
93.0%
95.0%
0
200,000
400,000
600,000
800,000
1,000,000
2008 2009 2010 2011 2012 2013 2014 2015
YTD
56.7
Landlordleverage
Tenantleverage
Peaking
market
Falling
market
Rising
market
Bottoming
market
Oakland, Tacoma
Savannah, Virginia
Baltimore
Jacksonville
Houston, Miami,
TEUs

Port of Miami
N
395
Downtown Miami
Rail Bascule Bridge Rehab
Seaboard Marine Terminal
Deep Dredge
POMTOC Terminal
SFTC Terminal
Underground Tunnel
Construction
Cruise Terminals
2014 volumes
(TEUs)▼
(as of March 2015)
Immediate market
size
0.9 m -2.7% 0.2 m 102.1 m.s.f. 6.5% 9.6%
2014 Net
absorption
YTD 2015 net
absorption
Absorption as %
of stock
Under
Construction
Average asking
rents (NNN)
Port rank
1.8 m.s.f. 1.4 m.s.f. 1.4% 0.6 m.s.f. $7.08 14th
N
FECR Intermodal Yard

Port of Seattle
Port vital facts
2014 volume: 1,387,539 TEUs
Main routes: Puget Sound
Trading partners: Asia, South America, North America, Europe
Cranes/Post-Panamax
cranes:
27 | 24
Current channel
depth:
50 feet
Berths: 11
Class I Rail Operators: BNSF, UPRR
Capital investments
• In late 2014, the Ports of Seattle and Tacoma announced they
will form an alliance to collectively manage all marine cargo
terminals. By pooling efforts, the hope is to attract additional TEU
volume and grow jobs.
• The largest metro area project is the Alaskan Way Viaduct and
Seawall Replacement Program, which will enhance freight
mobility, port facility access and regional mobility. The port has
invested $300 million toward this regional project.
Market conditions
• The industrial vacancy in the immediate vicinity of the port is 3.5
percent. Regionally, port-driven areas such as the Kent Valley
are benefiting, with declining vacancy and increasing tenant
demand.
• Leasing volumes have remained steady, though, limited supply is
hindering market demand. New construction groundbreakings
continue and proposed projects are being announced.
• The immediate area around the Port of Seattle is extremely
space-constrained. As a result, the vast majority of new
development is farther south in the Kent Valley and near the Port
of Tacoma.
• Logistics, aerospace and consumer goods companies are among
the market’s most active industries.
Development
• Port of Seattle / City of Seattle are the port’s main land owners,
which encompasses 1,543 acres of waterfront land and nearby
properties.
• The Port’s Century Agenda seeks to grow 100,000 port-related
jobs in the region over the next 25 years, by strengthening
access to global markets and supply chains. To that end, the port
has been engaging regional stakeholders to try to meet the goals
and needs of manufacturing, warehouse and distribution centers
in the area; the port’s focus is on transportation, infrastructure
and business incentives.
Summary
Port area market
score
Terminal operating
score
41.0
41.0
90.0%
92.0%
94.0%
96.0%
98.0%
100.0%
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2008 2009 2010 2011 2012 2013 2014 2015
YTD
TEUs
55.1
Landlordleverage
Tenantleverage
Peaking
market
Falling
market
Rising
market
Bottoming
market
Oakland, Tacoma
Savannah, Virginia
Baltimore
Jacksonville
Houston, Miami,

Port of Seattle
2014 volumes
(TEUs)▼
(as of March 2015)
Immediate market
size
1.4 m -12.9% 0.4 m 92.2 m.s.f. 3.5% 4.8%
2014 Net
absorption
YTD 2015 net
absorption
Absorption as %
of stock
Under
Construction
Average asking
rents (NNN)
Port rank
1.6 m.s.f. 0.2 m.s.f. 0.2% 1.6 m.s.f. $6.17 15th
BNSF Intermodal Yard
Terminal 30Terminal 5
Terminal 18
Terminal 30
Terminal 46
Interstate 5
Downtown
SeattleElliott Bay
Puget Sound
N

Mark Levy
Managing Director
Head of Port, Airport and Global
Infrastructure Services
+1 703 891 8404
mark.levy@am.jll.com
Craig S. Meyer, SIOR
International Director
Americas Brokerage Leader
Logistics and Industrial Services
+1 424 294 3460
craig.meyer@am.jll.com
License #: 00586344
Aaron L. Ahlburn
Senior Vice President
Director of Research
Americas Industrial and Retail
+1 424 294 3437
aaron.ahlburn@am.jll.com
Dain Fedora
Research Manager
Americas Industrial
+1 424 294 3444
dain.fedora@am.jl.com
Port, Airport & Global Infrastructure
report authors
Ignatius Armenia
Research Analyst
+1 201 528 4419
ignatius.armenia@am.jll.com
Gillam Campbell
Research Analyst
+1 404 995 6327
gillam.campbell@am.jll.com
Elliot Williams
Research Manager
+1 916 491 4322
elliot.williams@am.jll.com
Thomas Forr
Research Manager
+1 416 304 6047
thomas.forr@am.jll.com
Chris Fox
Research Analyst
+1 425 974 4013
chris.fox@am.jll.com
Drew Gilligan
Research Analyst
+1 813 387 1323
drew.gilligan@am.jll.com
Victoriya Gouchtchina
Associate
+1 514 667 5670
victoriya.gouchtchina@am.jll.com
Jonathan Jassebi
Associate
+1 604 998 6141
jonathan.jassebi@am.jll.com
Patrick Latimer
Research Analyst
+1 443 451 2609
patrick.latimer@am.jll.com
Margaret Martin
Research Analyst
+1 713 888 4079
margaret.martin@am.jll.com
Teresa Petrosyan
Senior Research Analyst
+1 213 239 6224
teresa.petrosyan@am.jll.com
Mehtab Randhawa
Research Manager
+1 919 424 8459
mehtab.randhawa@am.jll.com m
Geoffrey Thomas
Research Analyst
+1 804 200 6527
geoff.thomas@am.jll.com
Contributors

All West Coast ports have
channels deep enough to
accommodate today’s larger,
modern vessels. The following
eastern seaboard ports are (or
will be) able to handle larger
containerships when a new
Panama Canal opens in 2016:
New York/ New Jersey,
Baltimore, Virginia and Miami.

All About JLL
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased
value by owning, occupying and investing in real estate. With annual fee revenue of $4.7 billion and gross revenue of $5.4 billion, JLL has more than
230 corporate offices, operates in 80 countries and has a global workforce of approximately 58,000. On behalf of its clients, the firm provides
management and real estate outsourcing services for a property portfolio of 3.4 billion square feet, or 316 million square meters, and completed $118
billion in sales, acquisitions and finance transactions in 2014. Its investment management business, LaSalle Investment Management, has $55.3 billion
of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further
information, visit www.jll.com.
About JLLResearch
JLL’s research team delivers intelligence, analysis and insight through market-leading reports and services that illuminate today’s commercial real
estate dynamics and identify tomorrow’s challenges and opportunities. Our more than 400 global research professionals track and analyze economic
and property trends and forecast future conditions in over 60 countries, producing unrivalled local and global perspectives. Our research and expertise,
fueled by real-time information and innovative thinking around the world, creates a competitive advantage for our clients and drives successful
strategies and optimal real estate decisions.
This publication is the sole property of Jones Lang LaSalle IP, Inc. and must not be copied, reproduced or transmitted in any form or by any means,
either in whole or in part, without prior written consent of Jones Lang LaSalle IP, Inc.
COPYRIGHT © JONES LANG LASALLE IP, INC. 2015

2015-08-01 - PAGI-Seaport- JLL

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