With rising shipping costs, tariffs and the pandemic, industrial opportunities are providing high yield returns on logistical and distribution centers and warehouses along the California-Mexico border. MARQUIS Signature Properties has access to these and other lucrative income producing properties for acquisition.
Trade route traffic has continued to shift from US ports to over border crossings as higher shipping costs, tariffs and pandemic disruptions roil overseas supply chains. Meanwhile, trade clarity provided by the United States–Mexico–Canada Agreement is driving import growth with trade partners closer to home, specifically Mexico.
Since USMCA went into effect in July of 2020, trends for U.S. trade have demonstrated a strong rise in imports from Mexico and Canada. The number of inbound trucks from Mexico to the U.S. surpassed pre-pandemic levels, growing around 11% in 2021, after contracting only 2% in 2020.
Meanwhile, inbound truck counts from Canada shrank by 8% in 2020 and failed to recover to pre-pandemic levels, despite 7% growth in 2021, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics. Both trade partners have largely benefited from a strong recovery in U.S. consumer demand, although Mexico appears to be faring much better.
As a result, the demand for storage and distribution centers along the border has continued to increase leading to higher lease rates. If you are looking for alternative real estate investments, warehouse and distribution centers provide consistent cash flow and appreciation as demand increases.
For more details, contact us by email at ezra@marquissp.com or message me directly