•;VW is investing on their new plant in Guanajuato and their current plant in Puebla over US$1 billion to produce the Beetle and
•;Mazda and Sumitomo will invest US$500 millions in Guanajuato
on 260 hectares of land. Mazda will produce 140,000 units per
•;GM also started to fund US$420 Million in new projects, including the capacity increase in the San Luis Potosi and Silao’s
•;Chrysler Group US$500 Million expansion of its Saltillo plant
to accommodante the production of the Fiat Ducato.
•;Honda in Guanajuato US$800 millions to produce 200,000 units
•;BMW has plans to build a new plant in Mexico. Currently they
work with 30 suppliers in Mexico to export to their US plants.
The following image shows the projects which collectively represent
approximately US$10 Billion worth of Foreign Direct Investment
(FDI) in progress of deployment during 2012-2015.
With all the FDI arriving in Mexico from different sectors, a big
number of industrial markets have increase its activity considerably.
The industrial market in Mexico is still attracting the attention of
foreign investors. Lending institutions and also equity investors realized that Mexico’s dollar denominated, corporate guaranteed industrial properties offered in the primary markets more attractive yields
with a marginal risk.
All Mexican states have their own Economic Development team in
charge of promoting foreign and domestic investment and/or management support. Each State has their own guidelines when referring to grants or benefits intended for interested investors. These
guidelines are based on the number of jobs generated as well as the
monetary amount of possible investment. This is the reason why
each entity competes with the object of winning or attracting those
investments for their state. In many of these cases, private industrial
parks and local investors work together with the governments in a
common effort in order to attract investment.
• Institutional funds and development companies such as Prologis,
GE Intramerica, Corporate Properties of the Americas,
Finsa, O’Donnell, Hines, Prudential, Verde Realty, American
Industries, among other still increasing their industrial portfolio
in some strategic markets offering standard “Class A” industrial
• Cap Rates range from 8. 7 percent to 10. 25 percent on
• Construction Cost for new facilities “Core & Shell” could be
from US$38.00 to US$42.00 per square foot.
• 10-year lease terms on BTS projects. Five or seven year deals on
• Corporate guarantor is a mandatory requirement in Mexico on 90
percent of the transactions.
• The initial steps of the new Federal government are heading the
right direction and we clearly see outstanding perspectives for
the future of Mexico. Starting with the approval of the fiscal,
energy and labor reforms.
Source: MexicoNow Magazine
*Lease rates in US Dollars per square feet per year for a Class A and B buildings with
standard improvements inside.
Land price per square feet for fully developed land with roads infrastructure and
utilities on site.
Source: Cushman & Wakefield Market Research Department
Real Estate Highlights
Key Trends and Conclusions