A report by SNL Real Estate published recently contends that the completion of the Panama Canal expansion could boost real estate investment trusts that have properties in or near a range of U.S. ports that will see increased traffic due to the bigger canal.

“Ports along the Gulf of Mexico and the East Coast of the United States are prepping for the opening of the expanded Panama Canal. The project is expected to be completed in early 2016 and will cost an estimated $5.25 billion. The new system of locks will allow new ships to pass through that will be capable of hauling at least two-and-a-half times the cargo of vessels that currently use the canal. It is estimated that container traffic will increase 5% to 15% in ports that can accommodate the new ships, according to a July 8 article in The Wall Street Journal.”

The SNL report found that of the metropolitan statistical areas with exposure to these key ports, publicly traded industrial and diversified REITs have the highest exposure to the Houston MSA, with a total of 21.8 million square feet spread among 208 properties. The Baltimore and Hampton Roads, Va., MSAs have industrial properties owned by industrial and diversified REITs totaling 10.5 million square feet and 1.2 million square feet, respectively.

For the original WSJ article, click here.