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Demand For Warehouses Along U.S./Mexico Border Rises With Increase In Mexico Manufacturing Facilities

February 9, 2023

Demand for warehouses and distribution centers along the United States/Mexico border is anticipated to continue to rise as Mexico becomes increasingly more appealing for manufacturers globally. Mexico has become a favorable manufacturing location as many businesses take their operations out of Asia due to supply chain issues during and after the pandemic. Demand for American industrial real estate close to the Mexico border is expected to increase as manufacturers seek logistical hubs for goods manufactured in Mexico.

Prologis, Inc. reported that demand for Mexico real estate is soaring, and investors like Morgan Stanley are concentrating on warehouses in U.S. border towns in states like Texas and California.

For example, the southern California city of Coachella is particularly attractive due to its industrial area’s ideal location along the I-10 Freeway and Expressway 86, both of which are major transportation corridors. Expressway 86, also known as the NAFTA Highway, runs through the city providing access to Mexico through the Imperial Valley and Mexicali. Coachella also has access to rail service and three nearby airports: Palm Springs International Airport, Bermuda Dunes Airport, and Jacqueline Cochran Regional Airport. Coachella is located just 1.2 hours from Mexicali at a distance of 96 miles.