Nearshoring Keeps Industrial Leasing Red-Hot in Northern Mexico Industrial leasing momentum shows no sign of slowing in Mexico’s northern hubs. Monterrey led the country with more than 1.8 million square meters absorbed in 2024, while Saltillo and Tijuana also posted record take-up. Vacancy rates in these markets have compressed below 3%, creating sustained upward pressure […]
Tariff Uncertainty Pushes Investors Toward Mexico
New U.S. tariffs on Asian imports have accelerated the relocation of supply chains into Mexico. The Ministry of Economy reported $36 billion in FDI in 2024, with nearly 40% allocated to manufacturing. This shift has boosted demand for industrial real estate in northern Mexico and created spillover effects in residential and hospitality markets as workers […]
Tourism Arrivals and ADRs Rise in Cancún and Los Cabos
Mexico’s tourism sector continues its recovery and expansion, with SECTUR reporting a 9% increase in international arrivals in 2024. Cancún International Airport processed more than 32 million passengers, while Los Cabos posted occupancy rates exceeding 75%—the highest in the country.
Investors Weigh Performing Assets Against Long-Term Development
Hospitality investors face a strategic decision between acquiring performing resorts or pursuing new developments. Performing assets—stabilized hotels with consistent cash flow—are trading at cap rates between 6–7%, attracting institutional investors prioritizing immediate yield. By contrast, new development projects promise higher IRRs, often above 20%, but involve risks tied to land acquisition, permitting, and construction delays. […]
Peso Gains Ground Amid U.S. Bond and Dollar Volatility
The Mexican peso has emerged as one of the strongest-performing emerging market currencies, appreciating 3% in 2024 against the U.S. dollar. This performance contrasts sharply with declines in the Brazilian real (–5%) and Argentine peso (–30%). Analysts attribute Mexico’s resilience to Banxico’s disciplined monetary policy, which has maintained benchmark rates at restrictive levels, keeping […]
Nearshoring Sparks Industrial Leasing Surge in Northern Mexico
The industrial leasing activity in northern Mexico is increasing due to nearshoring and logistics demand. Monterrey is set to reach nearly 2 million square meters by 2024, with Saltillo and Tijuana also experiencing record growth. Vacancy rates are below 2%, and rents have risen by 15% to 20% year-over-year.
Riviera Maya Hospitality Pipeline Expands
The Riviera Maya is drawing hospitality investments, with major projects planned for 2025. Developers are constructing luxury resorts in Cancun, Playa del Carmen, and Tulum, while local sponsors add boutique hotels. Despite rising land prices, over 12,000 new rooms are expected in the next three years.