South Florida is among the 20 markets worldwide that are set to emerge as global logistics hubs. That’s according to a new report from CBRE Group.
The firm cites South Florida, along with Santiago, Chile, Bajio, Mexico, and Philadelphia, as emerging locations based on a number of factors. Those include significant investments in infrastructure, new trade policies and agreements, and more advanced supply chains and technologies.
“International trade is a powerful stimulant to economic and business development and it is very dynamic in the longer term,” says Richard Barkham, global chief economist at CBRE. “Changes to infrastructure and regulations and the growth of new markets means there is a continual need to drive efficiency through adjustment to supply chains. Logistics hubs are the main driving force behind the industrial real estate markets and are at the center of large clusters of distribution facilities.”
Since 1980, global trade has increased by nearly 600%, which has spurred the development of wider, more complex supply chains worldwide. Logistics hubs connecting multiple transport modes have been established in virtually every country to support this growth.
“Miami and South Florida as a whole is the natural choice for many national and international companies due to the area’s multilingual, multicultural workforce and pro-business climate,” says Miami-based industrial specialist and CBRE senior vice president Dave Albert. “With a growing population base and world-class transportation infrastructure, Miami is poised to maintain and grow its presence as a major logistics hub.”
South Florida—the region that includes PortMiami and Port Everglades in Fort Lauderdale—is a prime example of a long-time regional hub that is positioned to emerge as a global hub. CBRE says that is thanks, in large part, to investment in transportation infrastructure both locally and abroad.
In response to the widening of the Panama Canal, which will increase the flow of post-Panamax container ships from Asia to the East Coast of the US, South Florida has invested over $1 billion in projects that will upgrade the ability of both ports to handle the larger ships. According to CBRE, a significant portion of the investment has gone toward deepening the channel to allow for larger ships to pass through and upgrading the intermodal rail service, which will connect South Florida to 70% of the US population in four days or fewer.
“With the PortMiami Tunnel completed and the Deep Dredge project positioning Port of Miami to accommodate post-Panamax ships, we’re seeing strong demand for fast-track construction of new industrial product serving mid-sized and large-space users,” says Brian Sudduth, senior vice president at Miller Construction.