In this article the Wall Street Journal analyzes fallout on Mexico’s commercial real estate market from the outcome of the U.S. presidential election. While the election is still days away, the impact of the campaign and its outsized focus on Mexico already are being felt in the market for warehouses and factories in border towns like Juarez, Monterrey and Saltillo.
Leasing of industrial space along Mexico’s northern border has slowed sharply as uncertainty has grown over how the election’s outcome—particularly a victory by Republican candidate Donald Trump—would affect demand.
Mexico’s industrial real-estate market has exploded since the North American Free Trade Agreement took effect in 1994 and created a unified market between Canada, the U.S. and Mexico, making it easier for manufacturers to take advantage of cheap labor, low costs and less-stringent business regulations south of the border. In the past decade alone, it has nearly tripled to more than 710 million square feet of space.
But the election of Mr. Trump—who has called for the U.S. to pull out of NAFTA—could have a chilling effect on the market in the short term, experts say. If NAFTA were done away with, “on the Mexican side of the border a lot of the facilities will go vacant, rents per square foot will drop substantially,” said Tom Fullerton, an economics professor at the University of Texas at El Paso. “It’s not hard to imagine about a 30% to 40% vacancy rate collectively on both sides of the border.”
To read complete article click here.
more recommended stories
New luxury and PR strategy for Grand Hyatt Playa del Carmen
Luxury strategy and public relations agency.
Tulum’s “Art With Me” Festival instantly becomes a world class event (FORBES.com)
Sunbathing on the beach in Tulum,.
Beautiful Costa Mujeres needs to be at the top of your travel bucket list
For many, a Mexican getaway consists.
Despite safety and security concerns, Cancun remains # 1 tourist destination in Latinamerica
Cancun maintained its position as the.
600 new police for Cancun, Playa del Carmen and Tulum Quintana Roo
According to riviera-maya-news.com, approximately 600 new.
Teen jogger who accidentally crossed U.S. border from Canada is detained for two weeks
A teenager out for a beachside.
Grand Finale of the 2018 Merida Initiative National Mock Trial Competition for Mexican Law Students
Mexico City, 21 June, 2018 –.
Three time NBA Champion Klay Thompson charters plane to Mexico full of IG models
Three-time champion Klay Thompson is in.
Mexico’s soccer national team mental coach is transforming mindsets nationwide
Though the spotlight is always on.
Maya sacred book “Chilam Balam Tekax” astrological predictions analyzed by INAH experts
The first specialized integral study of.