MIGUEL CAVAZOS, SIOR,
CCIM, Chief Managing Partner
and cofounder of Citius Capital,
leading independent real estate
service firm with the most extensive
local presence in Mexico. Member
of the SIOR Young Professionals
Committee. Miguel specializes in
the industrial and investment sales
market and oversees the planning
and operation of his firm.
ABOUT THE AUTHOR
tier two and three to come is much higher. The gap between
the local supply base and what the market will demand opens
a big window to many North American auto suppliers to come.
The same can be said with regards to the new Audi and BMW
assembly plants.
I have no doubt that Mexico will become a leader in North America
in the automotive manufacturing industry. More investment is
coming to Mexico, and this situation translates to more business
opportunities for all. The Mexico question is one we should
all be asking our clients everywhere, or else we should accept
the idea of losing business opportunities and money coming
from commissions.
In Mexico the real estate cycle is changing dramatically, with
the north border towns (such as Tijuana, Juarez, Reynosa and
Matamoros) recovering as a result of the improvement of the
maquila industry. The next belt of industrial cities (such as
Monterrey, Saltillo and Chihuahua), are reducing their vacancy
rates and are receiving a tremendous amount of investments from
all types of industries. Mexico City and its large industrial real
estate market — pushed by enormous warehousing, buildings
and some manufacturing plants — grows better than most of the
primary markets.
The new hot market however is situated in Central Mexico,
comprised by various states (Guanajuato, San Luis Potosi,
Zacatecas, Queretaro, Aguascalientes, Puebla, Hidalgo, Tlaxcala,
and Puebla). Previously known for their solid agricultural and
mining sectors (and some isolated investments), the zone has now
become a land of opportunities for real estate developers and all
kinds of automotive suppliers with the new OEMs announced.
All these diversified markets across Mexico represent challenges
and opportunities for companies like us. Since the most practical
way to tour most of them in a week is by driving, the local
presence becomes important. You will need someone to help you
locally and to coordinate the agenda in detail.
The real estate practices — and more specifically brokerage
services — are very similar to those of the U.S. and Canada.
Besides the local developers, the number of institutional
developers has increased over the years; these days, the
Mexican REITs (FIBRA) with global capital has boomed and
is dominating the market. This helps to sophisticate the day-to-day practices, including commissions, across the main
industrial corridors.
I have specifically addressed the automotive industry to illustrate
an example of business opportunities available, whereas overseas
real estate brokers may team up with Mexican counterparts. I
insist, this is just an example; there are a number of other industries
that need to be serviced as well, including the aerospace industry
all over Mexico, the food and beverage, appliances, metal and
steel, service and logistics, and most recently (and with wide
potential), the oil and gas industries. All these industries demand
professional real estate services across Mexico, and all these
industries eventually demand space in your countries. So, why
not ask yourselves the “Mexico Question” just as we do.