Supply Chain Reconfiguration, International Trade, and Population Growth Drive Industrial Real Estate Decisions By Johannson Yap, First Industrial's Chief Investment Officer C ompanies in need of distribution and other industrial facilities require solutions that allow them to more easily receive and distribute an increasing flow of containerized cargo from international markets, while also managing port diversification strategies, as well as labor and rail capacity constraints. The increased complexity of the nation's supply chain is driving companies to rely on their partners in the industrial real estate sector to provide the right facilities in the right locations. Johannson Yap    Industrial real estate providers have invested in expanding their platforms to better serve customers' supply chain needs. One example is First Industrial Realty Trust's Strategic Land and Development Joint Venture, First Cal 3, with the California State Teachers' Retirement System (CalSTRS). The venture is unique in its focus on investing in strategically located land parcels and vertical development in markets where customers require additional capacity due to supply chain reconfiguration, international trade, demographic trends and economic expansion.    One of First Industrial's recent investments was a 537 acre land site in Palm Beach County, Florida, the largest land acquisition in First Industrial's history, on behalf of the venture. The South Florida market enjoys a growing economy, increasing port activity, high occupancy rates, and excellent distribution work force. The Ports of Miami, Everglades and Palm Beach are all projected to increase cargo activity and the Port of Palm Beach will be undergoing an extensive expansion program to address rising import and export volumes. With low industrial vacancies and limited available land for development in the area, First Industrial can provide companies a strategic location with efficient distribution to a growing customer base in South Florida.    First Industrial has begun work on 'First Park South Florida' on the site, which is located within a business park located off the Beeline Highway near major supply chain routes. The Park will also allow customers the ability to ship inland to other Southern states with ready access to I-95 and the Florida Turnpike, rail service, plus proximity to air and sea ports. First Industrial has vested and fully entitled development rights to construct more than 6.2 million square feet of master-planned industrial product.    The park will include multiple property types found in the typical company's supply chain, and First Industrial can offer built-to-suit development and will also be constructing speculative facilities. R&D/flex facilities on the site can accommodate growing demand for research space, principally from the biotech and bio medical sectors. Light industrial buildings and distribution centers can meet the needs of customers serving the growing local economy and increasing population. Additionally, selected land parcel sales may be made to individual strategic customers.    By understanding companies' supply chain needs, First Industrial can provide customers with the right solutions through its national portfolio, diverse capital base, expertise in multiple facility types, and development capabilities.