The president of CBRE Mexico recognized there is uncertainty in the Mexican real estate market, although he added that the market is healthy, growing slowly but steadily.
“Mexico’s commercial real estate market is not in crisis, it only grows at a slower pace than last year, when industrial parks stand out as the most dynamic real estate segment”. This was stated by Lyman Daniels, president of CBRE Mexico in a press conference, where he stressed that the market moves in cycles, although each of its segments (industrial parks, retail, offices and hotels) grows at different rates.
When asked about the growth in Mexico City, he considered that not many projects have been canceled lately. He stated that the industrial park market is the one that shows the strongest growth; determining the lowest vacancy rate in the last 25 years, placing it at 5.6%, at the end of the second quarter of 2019.
Lyman Daniels, presidente de @CBREMexico, habló con nosotros y esto fue lo que comentó en torno al estado en el que se encuentra el mercado inmobiliario de #México. #FelizMiércoles. pic.twitter.com/VxUozjtd34— Real Estate Market (@RealEstateEarth) July 31, 2019
He added that, with vacancy levels below 7%, new inventory must be built because with these margins the market becomes tight. He also indicated that traditional economic factors and a series of disruptive variables, favor the development of electronic commerce, distribution centers, automation, multilevel, among others.
On the commercial real estate market as a whole, he said that throughout 2019 the market has been active in all segments, he even noted that this year they have observed more sellers than the average of previous years, but also more buyers than normal. Daniels’s explanation in this regard was that different levels of risk are observed; which emerge, not only in Mexico, but also globally.
San Miguel Newsroom with information from https://www.realestatemarket.com.mx