About Us Diversified Platform Portfolio Insights & Perspectives Careers CONTACT US INVESTOR LOG IN 2021 Investing in Mexico CONTRIBUTORS DAVID BUCK EXECUTIVE MANAGING DIRECTOR, GLOBAL HEAD OF LOGISTICS LANGE ALLEN MANAGING DIRECTOR, U.S. INDUSTRIAL/LOGISTICS DEVELOPMENT WILL MCINTOSH, PH.D GLOBAL HEAD OF RESEARCH JAY JOHNSTON SENIOR ASSOCIATE, RESEARCH MARK FITZGERALD, CFA, CAIA EXECUTIVE DIRECTOR, RESEARCH .A{STROKE-LINEJOIN:ROUND;}VIEW FULL ARTICLE .A{STROKE-LINEJOIN:ROUND;STROKE-WIDTH:2;STROKE:#FFF;}DOWNLOAD COPY LINK OCTOBER 2021 Executive Summary This paper will focus on Mexico’s industrial sector opportunity while providing a historical overview of the U.S./Mexico economic partnership, describing the country’s real estate demand drivers, and highlighting potential investor risks. Global real estate investors have increased their focus on Mexico in recent years. Capital flows during the latest cycle have exceeded prior peaks, driven largely by heightened interest from foreign operators and investors looking to reshore production and shorten supply chains. Mexico’s maturing demand drivers (e.g., a diversified economy, favorable demographics, expanding middle class, and prospects of reshoring in North America) warrant this increased interest from institutional capital. Mexico’s institutional quality real estate market is still in a relatively early stage. To take but one example, Fibras (or Mexican REITs) only began to emerge in 2011. The industrial sector is one of the country’s more sophisticated property sectors, though; due largely to Mexico’s long standing as a cross-border manufacturing hub. Strong warehouse demand, coupled with limited supply, suggests the market has plenty of growth potential. While such longstanding risks as corruption and currency volatility still exist, the country’s trade relationship with the U.S. has gained added clarity after the signing of the U.S.-Mexico-Canada Agreement (USMCA) in late 2018 (which took effect on July 1, 2020). .A{STROKE-LINEJOIN:ROUND;}CONTINUE READING Additional Insights UNITED STATES, ECONOMY, MARKET TRENDS, PROPERTY SECTORS October 2021 Research Update: October 2021 UNITED STATES, ECONOMY, MARKET TRENDS July 2021 2021 The Benefits of Direct Real Estate SEE MORE INSIGHTS About Us Leadership Environmental, Social & Governance (ESG) Diversified Platform Investment Management Private Wealth Development Acquisitions Lending Portfolio Insights & Perspectives Contact Us Careers Form ADV Privacy & Accessibility INVESTOR LOG IN © 2021 USAA Real Estate. All rights reserved. × We use cookies to analyze the usage of our website and give you a better experience. You consent to our cookies if you click on "Agree" and continue to use our website. Read our Privacy Policy for more information and to know how to amend your settings. ACCEPT DECLINE