TAG Industrial Watch: November 16, 2024
If the reelection of Donald Trump guarantees anything, it’s higher tariffs on Chinese goods and more imports from Mexico. In our recent August issue of the Industrial Watch magazine, TAG examined how the tariffs originally enacted by Trump and continued under Biden put the nearshoring movement in motion instead of reigniting a manufacturing boom. During the first eight months of 2024, trade from China to Mexico shot up 22% year-over-year on top of the 33% increase from 2023 as companies looking to evade tariffs imported goods into Mexico for final assembly before shipping them across the border into the U.S. As a result, cross-border trucking traffic between Mexico and the U.S. jumped by 52% year-to-date through September, providing a windfall for international gatekeepers Laredo and El Paso, Texas (CNBC).
The increase in manufacturing and shipping activity along the Mexico-Texas border has sparked a gold rush in industrial development. While the national industrial pipeline has slowed significantly under the weight of higher interest rates, the amount of space under construction has skyrocketed in places like Laredo where the inventory of big-box warehouses is set to expand by 26% (CoStar). Despite the increase in shipping activity, industrial demand across all property sizes has slowed down this year along the border and vacancy rates are rising from historic lows. Industrial investors looking to capitalize on the growing nearshoring movement may be better served by taking a closer look at small industrial properties where new supply, and thus the threat of over-building is essentially non-existent.
I N D U S T R I A L N E W S
‘Made In Mexico’ Trade Controversy Is
Provoking Another Kind Of Border War
CNBC – October 25, 2024
Read More
Onshoring, Nearshoring Shift Industrial Landscape
GlobeSt.com – October 31, 2024
Read More
10 Issues Facing Commercial Real Estate
WealthManagement.com – November 13, 2024
Read More
Why Industrial Outdoor Storage Will Always Be In
Commercial Property Executive – November 6, 2024
Read More
Port Cities Face Warehouse Glut
As Trade Flows Rebalance
GlobeSt.com – November 4, 2024
Read More
R E G I O N A L N E W S
Partners Platting Industrial Park Near IAH
Connect CRE – October 11, 2024
Read More
Groundbreaking Held For Ironhead
Commerce Center In Northlake
REjournals – November 13, 2024
Read More
Milwaukee Industrial Growth Sees
Ripple Effects In Submarkets
REBusiness – November 14, 2024
Read More
Realterm, NIT Industrial Team Up
On El Paso Development
Commercial Property Executive – November 8, 2024
Read More
ZS Capital Partners Pays $9.4M For Small-
Bay Industrial Property in Longmont
MileHighCRE – October 24, 2024
Read More