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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