TAG Industrial Watch: February 11, 2023

America’s reshoring revolution that kickstarted as a result of the supply-chain crisis is actually having a big impact along the U.S. and Mexico border. Dubbed “near-shoring”, many companies are finding it more economical to relocate manufacturing from China to Mexico in order to import goods into the U.S. Goods produced in Mexico for American consumption are often transported to border cities for distribution. As a natural consequence, the industrial real estate market in border cities from San Diego, California to Laredo, Texas is booming, creating new opportunities for American businesses that provide industrial supplies, logistics, and warehousing.

Last year, the value of imports from Mexico jumped 18.3% compared to overall imports rising 14.5% (U.S. Census Bureau). Major institutional players like Prologis and Morgan Stanley have already invested millions of square feet in new developments, yet industrial supply remains tight (Bisnow). For example, the vacancy rate in Laredo sits at just 1.7% (CoStar). If Mexican imports continue to rise, industrial businesses and landlords along the border will be well-positioned to reap the benefits.

I N D U S T R I A L   N E W S

Warehouses Boom On Border As Manufacturing Moves To Mexico
Globe St. – February 10, 2023
Read More

U.S.-Mexico Border Towns Draw Investment As Industrial Demand Grows
Bisnow – February 8, 2023
Read More

Redemption Requests Raise Eyebrows for Non-Traded REITs
WealthManagement.com – January 30, 2023
Read More

Industrial Sector To Maintain Winning Streak In 2023
Commercial Property Executive – February 1, 2023
Read More

Blackstone, After Sharp Drop In Deals, Looks Beyond Market Challenges
CoStar – January 26, 2023
Read More

R E G I O N A L   N E W S

Chicago Industrial Turns In “Banner Performance” For 2022
Connect CRE – February 8, 2023
Read More

Industrial’s Golden Child Has 130% More Sublease
Space On The Market Than A Year Ago
Bisnow – February 3, 2023
Read More

Prologis Plans Suburban Austin Industrial Project
Commercial Property Executive – January 20, 2023
Read More

Trammell Crow Plans Massive Industrial Project Near DFW Airport
The Real Deal – January 31, 2023
Read More

Waste Management To Triple Its Industrial Footprint in Englewood
Mile High CRE – January 17, 2023
Read More