How Nearshoring Could Impact CRE

Written By Marc Nicholson

WHAT SUPPLY CHAIN TRENDS MEAN FOR CRE DEMAND DRIVERS​

Imports Data Reveals Shift In U.S. Trading Partners​

  • For The first time in two decades, the United States imported more goods from Mexico than China in 2023​

  • This highlights the nearshoring trend that started after the global supply chain problems in 2021 and 2022​

Industrial Absorption Data Highlights Changing Landscape​

  • With more goods coming from Mexico than China, markets like Dallas, Austin, Houston, Phoenix, and San Antonio have recorded industrial absorption above previous levels since 2019​

Shifting Supply Chains Affect All Forms Of CRE Demand​

  • While southwestern industrial markets stand to gain from the trend, it will also create more jobs, income, and housing demand​

  • As a result, these locales are poised to see heightened apartment, retail, industrial, and self-storage utilization​

  • Shipping costs may normalize as political conditions improve; but nearshoring is a trend for investors to watch closely​

*Sources: Marcus & Millichap Research Services, McKinsey​

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Marc Nicholson
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