Apologies for the gratuitous alliteration, however, it is true port properties are feeling the pain of this global downturn.
The recent article from Globe St. explains it all.
According to the report, the 10 US ports surveyed handled 847,832 20-foot-equivalent units (TEUs) in February, the most recent month for which actual numbers were available. The number was down 20.6% from January and 31.3% from February 2008.
Well that is very much inline with what we have seen happen across the commercial property market. I will typically point to the Lehman Brothers debacle of September 2008 as the inflection point. From this date there is apprximately a 30% loos in property values across the board.
“The good news is that we’ve already seen the bottom for the year, and month-to-month numbers are already starting to climb,” he says. “We’re still going to see double-digit declines compared with last year but the size of the gap is starting to narrow.”
This probably has a direct correlation to consumer spending data which came out with this mornings GDP report. One of the bright spots was the resilience of the consumer. People were spending, and people need goods to spend on and goods come through ports.
There is nothing specific about Newark in this article other than to say the West coast ports are bearing the brunt of the downturn. You can refer to this post where I referenced an article specific to the downturn at NY/NJ ports.
This is important to Newark as the port is seen as a major economic engine to drive the revitilization of the city. The proposed port exmansion and redevelopment has to move forward and cannot be derailed by nearterm slowdowns. I also posted about the redevelopment plans a while back. you can see that post and links to plans here.