Mexico’s CRE industrial market has positive near-term outlook – Fitch

BANGALORE (Thomson Financial) – Fitch Ratings said the near-term outlook for the commercial real estate (CRE) industrial market in Mexico is positive.

Fitch noted that with its close proximity to the US and relatively educated labor force, Mexico is a viable option for many North American manufacturers that seek new locales for their investments.

The ratings agency said the demand profile for CRE in Mexico is trending upward, and financing that employs commercial mortgage-backed securitization (CMBS) technology is primed for local and cross-border growth in the near future.

Fitch said falling interest rates alongwith liquidity provided by foreign and institutional investors, have made the financing of new developments possible.

However, there are still some hurdles to clear before CMBS are to be employed in the Mexican CRE market such as short-term nature of leases, possible liquidity shortages, fluctuating risk appetites and tighter underwriting standards.

TFN.newsdesk@thomson.com

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