Port of Oakland in Talks to Build 170 Acre Seaport Logistics Complex

Logistics leadership at the Port of Oakland continues to keep up a torrid pace to position the gateway as a cargo distribution hub.

Talks have begun to develop the next phase of a 170-acre Seaport Logistics Complex with Commissioners giving the go-ahead last Friday evening.

According to port spokesmen, the commission authorized exclusive negotiations between the port and industrial real estate developer CenterPoint Properties.

If a deal is made, this would create the largest logistics complex at any West Coast U.S. port.

“It’s intended to make the port a magnet to attract additional containerized cargo volume,” said Maritime Director John Driscoll, the Port’s lead negotiator.

The timing could not be better, note some analysts, as containerized import volume at Oakland declined last month for the first time since February. October import totals were down 3.3 percent compared to 2014, and may augur weaker numbers in the coming months.

2015 Seaport Outlook
TEUs are shifting and industrial occupancy is healthy across North American seaports

Already leading in TEUs, Gulf and eastern seaports are anticipated to capture even more West Coast discretionary cargo when a new Panama Canal opens next year. Demand for industrial space will not transfer equally - there are too many complexities and variables in the movement of goods to portend a macro shift in industrial occupancy. For now, it’s a game of wait-and-see.

Jones Lang LaSalle’s 2015 North America Seaport Outlook explores these trends and more to provide a distinctive analysis of seaport-centric industrial space in gateway North America real estate markets.

It explores the influence of global economic drivers, trade and cargo flows, socioeconomic and political factors, and port capacity and infrastructure investment.

The report also profiles major North American seaports, including TEU volumes and nearby industrial vacancies, with sensitivity conclusions drawn all the way down to the property level.

Fundamentals are tightening across all seaport markets, and those with quality industrial real estate in nearby population centers will continue to see rents outpace greater market averages.

Oakland has long been a leading West Coast gateway for outbound goods, but has been working on becoming a more attractive inbound player in future years.

In subsequent phases of development, the port plans to construct a regional distribution center and warehouses at the complex.

The port and developer were given six months to reach agreement on building a portion of the complex. The new project would encompass 20 acres of port property. It would include transload and cross-dock facilities where importers could swiftly transfer containerized cargo from ships to trains.

CenterPoint, a major developer of transportation-related real estate projects, would build and lease the facilities to tenants involved in international logistics.

The 20-acre facility will be built on land acquired by the Port at a decommissioned army base. It will be adjacent to phase one of the Seaport Logistics Complex, a 13-track rail yard that’s nearing completion.