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Gas prices may have a positive effect on goods shipped to Utah

Gas prices may have a positive effect on goods shipped to Utah



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There's at least one good side to higher fuel prices.

It involves the way goods are normally shipped to the West. In the past, they may go from a port in, say Los Angeles, to a distribution center in Minnesotta, then back to Utah.

Craig Kaminski of Commerce CRG Real Estate says now the big companies are looking at building smaller distribution centers here in Utah. Bottom line, he says available warehouse and industrial space is filling up.

"We don't see any kind of decline in transportation costs. So this efficiency will continue," he said.

Kaminski says changes in the mortgage industry allow fewer companies to outright buy the space, so they're leasing it at increasing costs.

E-mail: mgiauque@ksl.com

Marc Giauque

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