The Mexico Industrial Survey confirmed that during Q4 2020, owner motivations and points of view had not changed significantly from Q4 2019. Owners are more risk-averse to several categories of concern for tenants and government economic development agencies. While owner/developer concerns include many of those same criteria, historically the owner/developer group is even more concerned with political instability.
This manifests primarily with regulation and permitting for development, taxes, and environmental regulation. It is relevant for owners at federal, state, and municipal levels in Mexico, creating a high level of reporting and compliance activities for both new development and existing assets.
This political uncertainty increased with the election of the new Morena party also which swept many positions at state and local levels.
2019-2020 demonstrated political uncertainty as owners worked through new policies implemented by the new administration.
Owners are continuing to develop projects to meet industrial demand, but they find more regulation and complications than in previous administrations. 2021-2022 is expected to bring more of the same.
More than 41% of all owners surveyed believe they will encounter Pacific Rim clients during 2021-2022. This is the first time we have noted such similar expectations for both Pacific Rim and U.S. prospects.