U.S. Elections, Mexico Industrial

The upcoming U.S. presidential election is having an impact on commercial real estate, mainly due to the uncertainty of the outcome. It’s also exerting an impact on industrial space along border towns in Mexico, such as Juarez (in the state of Chihuahua); Monterrey (Nuevo Leon) and Saltillo (Coahuila). Industrial space leasing for factories and warehouses has slowed appreciably along Mexican’s northern border.

Rhetoric aside, the main issue is whether Republican Donald Trump is elected – and what it means for the North American Free Trade Agreement (NAFTA). Trump is urging the U.S. to pull out of NAFTA, which could slow the market in the short term. If the U.S. did pull out of NAFTA, facilities would go vacant and rents per square foot would drop, according to economics professor Tom Fullerton with the University of Texas El Paso.

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