How did CBRE respond to the significant changes experienced in Mexico during 2019?

2019 emerged as a year marked by multifaceted changes encompassing governmental, social, economic, and commercial realms. CBRE’s distinctive advantage lies in its nimble and proactive approach to swiftly addressing these shifts, offering solutions to clients during times of ambiguity. Our forte lay in guiding clients through the dynamic landscape of 2019, which, in my 25 years in Mexico, witnessed more changes than any other year. The evolving ecosystem demanded adaptability; those unable to respond were at risk of being left behind. CBRE not only swiftly adapted but enabled clients to navigate these transformations effectively. As a third-party provider, our role extends from brokerage to project management, property and facilities administration, and valuations. We are soon introducing additional business lines to enhance our suite of client services.

The investment in construction in Mexico has declined. How is CBRE adjusting to this altered landscape?

While certain construction sectors have witnessed a decline in investment, Mexico’s industrial segment, a significant focus area for us, portrays contrasting growth trends in logistics and manufacturing. Third-party logistics and the burgeoning e-commerce sector have emerged as pivotal drivers. The surge in e-commerce necessitates robust logistics spaces to meet the demands of swift and accurate deliveries, particularly challenging in a country without a well-established retail distribution infrastructure. Despite certain sectors experiencing fluctuations, we’re not faced with an ominous void of activity. The industrial market is fiercely competitive, representing the most competitive landscape I’ve observed in my 25-year tenure.

What factors contribute to this competitiveness in Mexico’s industrial market?

E-commerce stands as a primary driver. Mexico’s automotive manufacturing sector is currently at its peak in terms of size and robustness. Several plants have surfaced over the past half-decade, significantly contributing to the demand and growth in the industrial sector. This growth isn’t confined to specific cities, industries, or markets; it’s a nationwide phenomenon. The quality of buildings being erected today in Mexico surpasses the average standards witnessed two and a half decades ago, aligning competitively with global standards across the Americas, Europe, and Asia.

What additional services is CBRE planning to introduce in the near future to diversify its offerings?

The inevitable institutionalization of the market is evident with more publicly traded funds and companies entering, such as developers, third-party funds, and banks. These entities demand the high-quality institutional services synonymous with CBRE worldwide. Offering both debt and equity-based financing options, our role revolves around being their strategic partners, attending to administrative requirements, and supporting their growth trajectory. We’re expanding these services into Mexico shortly to cater to this evolving landscape.

What challenges are CBRE’s clients grappling with amid Mexico’s evolving market?

A significant challenge for our clients lies in making critical decisions with limited information. Having a partner capable of illuminating available options, risks, and potential rewards becomes imperative. Business owners seek insights into market trajectories, key drivers, and anticipations, areas where CBRE serves as an educational resource for our clients.

How did the number and types of deals CBRE closed in 2019 compare to 2018?

In terms of numbers, deal closures remained similar, yet the types of deals varied notably. 2019 witnessed larger, even record-breaking deals. Global investors and tenants displayed strong confidence in Mexico, looking beyond political fluctuations and instead seeking countries offering rule of law and conducive environments for investments, production, and operations. The optimistic outlook in Mexico attracted global players back to the country, considering its strategic location and promising demographics. CBRE’s Mexican arm has been one of the fastest-growing among CBRE’s global operations for a decade, a trend I foresee continuing. Growth will stem from market penetration, operational expansion across sub-markets, and amplification of service lines.