The Case For Industrial Real Estate In Mexico
The Institutionalization of an Evolving Market
Why Mexico Industrial Real Estate?
During the past two decades, Mexico’s industrial base has evolved to become a preferred location for the manufacture of many products serving the United States, Canada and domestic markets. Rising amounts of online shopping are creating demand for logistics in larger cities in Mexico, with low current e-commerce adoption rates providing plenty of runway for future tenant demand growth.
Location
Mexico is an essential location for North America's manufacturing.
Competitive Cost
Mexico offers skilled manufacturing labor at costs lower than China.
Free Zone Along the U.S. - Mexico Border
New income tax and value-add tax incentives for companies operating in the northern border region of Mexico.
Cap Rate Spread
The asset class offers risk-adjusted return premium over U.S. Industrial.