Mexico has long been a natural hub for international companies to establish their manufacturing businesses. With its competitive skilled work force and low set up costs coupled with good logistics networks both to US and South America making the country well-positioned to attract Foreign Direct Investment capital.
In fact, Mexico is one of the world’s top locations for FDI. Mexico has one of the highest CAP Rates, between 6 and 7 percent, whereas the US has between 3.5 and 4.5 percent.
However, the Post Pandemic Business Park Development Market in Mexico is reaching new highs and creating opportunity for investors and developers to come together and achieve above market rates of return. The reasons for this include:
The rise of “Nearshoring” is increasing Year on year demand for facilities by some 15%. As post Pandemic, customers and suppliers are now looking to reduce risk and repatriate key supply plants back to their local markets.
This growth is compounded by a booming E-Commerce demand that developed during the Pandemic-which now contributes to 10% of all purchases made and is driving a high demand for storage space, causing rents and land costs to rise.
Vacancy rates in Mexico City for example are at an all-time low of 1.3%. We are seeing that the Storage and logistics model is changing from ‘just in time logistics’ to ‘just in case storage’ approach. This limits growth and is creating opportunity for land owners and operators alike.
PRO Project Management proud to announce that it is working with both Government and Private Land Owners who have the Land available to develop state of the art Business Park Facilities, Logistics Centers and Technical Campuses in the State of Jalisco. For more information, please Contact Mr. Omar Chavez email@example.com