2012 Global Market report - NAI Global

Mexico City, Mexico
Contact
NAI Mexico
+1 619 690 3029
Country Data
Area (Sq Mi)
GDP Growth
GDP 2011 (US$ B)
GDP/Capita (US$)
Inflation Rate
Unemployment Rate
Interest Rate
Population (Millions)
Mexico City At A Glance
RENT/SF/YR
low High effective avg. Vacancy
doWntoWn offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
suburban offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
IndustrIal
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
Downtown
Neighborhood Service Centers
Sub Regional Centers
Regional Malls
Solus Food Stores
$
$
$
$
$
$
$
$
$
$
$
$
$
26.65
19.80
11.20
22.20
16.65
11.10
5.00
5.30
5.55
20.00
19.80
27.75
38.50
N/A
$
$
$
$
$
$
$
$
$
$
$
$
$
44.50
26.40
17.75
27.75
22.20
17.76
6.65
8.35
8.35
73.50
28.60
44.40
55.50
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
7.00%
15.00%
20.00%
15.00%
25.00%
15.00%
10.00%
7.50%
10.00%
10.00%
15.00%
10.00%
10.00%
N/A
deVeloPment land low/m 2 High/m 2 low/acre High/acre
Office in CBD
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
Retail/Commercial Land
Residential
758,449
3.9%
$1,041.09
$9,489.19
3.2%
4.5%
4.5%
109.713
Mexico City, the capital of Mexico, is located in South Central
Mexico with over 23 million inhabitants. Mexico City is the
first stop for foreign investors interested in industrial, retail,
and office investments in Mexico. A competitive exchange
rate, record high exports, a low inflation rate (3.25%) and
significant international reserves ($130 billion), provide a strong
foundation for economic growth through 2012. Mexico City is
a global city hosting many Latin America HQ operations.
Mexican firms with headquarters in México City include;
Grupo Modelo, Televisa, Grupo Azteca, Aeroméxico, Grupo
Carso, Telmex, DESC, GICSA and BIMBO. Automotive firms
include GM, Ford, Volkswagen, Nissan, Honda, Fiat and
Chrysler. Multinationals like Coca Cola, Pepsi, Honeywell,
Siemens, Motorola, USG, Microsoft, IBM, HP, Samsung,
Sony, INTEL, LG, P&G and Walmart maintain headquarters
in Mexico City. There is more than 12.5 million SM of
industrial construction. By the end of 2011, industrial
vacancies in Mexico City area dropped to 7.5% from 10.6%
in 2010, due to absorption of 260,000 SM. Less active
submarkets are Tultitlan with 16% vacancy and Vallejo
Azcapotzalco with 12.5%; all other industrial sectors are
experiencing single digit vacancies. New developments are
being built in Cuautitlán, Tlalnepantla and Toluca-Lerma.
Lease rates experienced a rise of 4% during 2011.
Wal-Mart, Costco, Home Depot, Best Buy, Office Depot and
other big box retailers experienced growth, with Walmart
opening over 350 branded stores during 2011. Investors
will seek stand-alone sites, strip and anchored centers for
openings in early 2012.
Office market vacancies stand at 10.7%, similar to 2010.
There are 7 million SM of office space in Mexico City and
over 800,000 SM under construction. Demand for Class A
offices shows no sign of diminishing and construction is at
an all time high with 150,000 SM under construction on
Avenida Reforma alone. New construction exceeds previous
years, with over 800,000 SM of offices, 250,000 SM of
industrial buildings and 145,000 SM of commercial areas
completed during 2011. Office lease rates range from $24
to $40/ SM/month. The Mexico City office market reflects
strong activity, with constant demand which will remain
through 2012.
Mexico City’s critical mass, domestic demand and presence
as a leader among Latin American corporate headquarters,
ensures growth will continue for Mexico City as a global
destination for both corporate users and investors.
$ 1,280.00 $ 3,000.00 $ 5,179,984.22 $ 12,140,588.01
$ 408.00 $ 878.00 $ 1,651,119.97 $ 3,553,145.42
$ 60.00 $ 243.00 $ 242,811.76 $ 983,387.63
$ 100.00 $ 325.00 $ 404,686.27 $ 1,315,230.37
$ 215.00 $ 690.00 $ 870,075.47 $ 2,792,335.24
$ 265.00 $ 560.00 $ 1,072,418.61 $ 2,266,243.10
Monterrey, Nuevo Leon, Mexico
Contact
NAI Mexico
+1 619 690 3029
Country Data
Area (Sq Mi)
GDP Growth
GDP 2011 (US$ B)
GDP/Capita (US$)
Inflation Rate
Unemployment Rate
Interest Rate
Population (Millions)
Monterrey At A Glance
RENT/SF/YR
low High effective avg. Vacancy
doWntoWn offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
suburban offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
IndustrIal
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
Downtown
Neighborhood Service Centers
Community Power Center
Regional Malls
Solus Food Stores
$
$
$
$
$
$
$
$
$
$
$
14.91
13.66
9.94
18.63
22.37
14.91
3.00
4.32
N/A
27.34
19.88
N/A
25.47
N/A
$
$
$
$
$
$
$
$
$
$
$
19.89
18.63
14.91
29.83
26.09
21.12
3.96
5.04
N/A
45.98
24.86
N/A
62.45
N/A
$
$
$
$
$
$
$
$
$
$
$
17.83
16.72
14.49
27.87
23.41
16.72
3.20
4.35
N/A
27.87
21.18
N/A
44.59
N/A
5.00%
7.00%
6.00%
10.00%
11.00%
12.00%
10.00%
9.00%
N/A
6.00%
12.00%
N/A
4.00%
N/A
deVeloPment land low/sf High/sf low/acre High/acre
Office in CBD
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
Retail/Commercial Land
Residential
758,449
3.9%
$1,041.09
$9,489.19
3.2%
4.5%
4.5%
109.713
Monterrey, Nuevo Leon is located in Northeast México, 140
miles from the Laredo, Texas border crossing. It’s the third
largest city in Mexico, with a population of 4.6 million. It
ranks second in Mexico’s industrial production through
well-developed communication systems, an educated work
force and proximity to the US. Due to its 100 years of
industrial experience, Monterrey is known as the Sultan of
the North, and is often compared with Chicago.
As the major industrial market in Northeast Mexico, Monterrey
hosts multinational corporations such as BASF, Caterpillar,
Daewoo, GE, JCI, Navistar, Mattel, Panasonic, Parker, LG,
Whirlpool, LG, Carrier, Rockwell, Ryder, Lego, Arvin Meritor,
MD Helicopters, Hitachi, Sonoco, Heb, Nippon Seiki and
Polaris. Monterrey also offers both domestic and foreign
operations, a diverse supplier infrastructure and also the
benefits of Monterrey’s high quality of life and low cost
workforce. Developers include both regional and international
firms such as CPA, Prologis, Verde, Finsa and Intramerica.
Monterrey offers more than 40 industrial parks in seven
industrial zones with average vacancy rates near 10% at
the end of 2011. The industrial market was very active
during 2011, with 44 new firms commencing operations.
During the second half, several existing companies initiated
new plant investments. As of October 2011, there are 12
industrial firms negotiating new space. Activity is projected
to remain consistent through 2012. Industrial lease rates
have remained constant during 2011, although developers
are aggressively offering more concessions through free
rent and tenant improvements. 1,200,000 SF in multiple
industrial projects were under construction at the end of
2011. Developers will continue to offer aggressive incentives
and 2012 will continue as a tenant’s market. Much of the
excess inventory will be absorbed.
The office market saw a growth during 2011. Although
vacancy rates will fall below 8% in 2012, rental rates have
not risen. Current projects under construction range from
20,000 to 100,000 SF buildings.
US retailers such as Walmart, Sam’s Club, Costco, Sears
and HEB continue to open stores in Monterrey. Home Depot
and Lowes have established a presence. Prospects are
strong for many additional big box retailers and franchises
to expand in Monterrey during 2012.
Monterrey’s critical mass of industrial firms, proximity to US
markets and 100 year manufacturing history ensure the future
is promising as one of Mexico’s premier destination markets.
N/A N/A N/A N/A
$ 4.18 $ 18.58 $ 14,006.12 $ 62,256.86
$ 3.72 $ 10.00 $ 12,464.78 $ 33,507.46
$ 1.39 $ 9.29 $ 4,657.54 $ 31,128.43
$ 5.57 $ 46.45 $ 18,663.66 $ 155,642.15
$ 13.94 $ 90.00 $ 46,709.40 $ 301,567.14
2012 Global Market Report n www.naiglobal.com 74