Mexico’s industrial real estate market is benefiting from the need for more resilient supply chains. PGIM’s Enrique Lavín, DHL’s Guillermo Espinosa Armendáriz and CBRE’s Yadira Torres-Romero explain the advantages and challenges of nearshoring.

Insights to Share:

• Nearshoring is spurring industrial activity beyond Mexico’s border cities as companies seek inland nearshoring opportunities.
• The lower cost and availability of labor explains why companies have relocated or expanded manufacturing operations in Mexico.
• The cost of capital, even for transactions denominated in U.S. dollars, is lower than in the U.S.