Commercial Investment Real Estate July/August 2019 | Page 15

CIRE: What markets and market segments are most
challenged? Do you see those changing?
Garcia: In regions where economic activities are centered —
Mexico City, Monterrey, and Guadalajara — there has been a
lot of office development, so now we have available space. The
industrial sector will grow in the following years.
CIRE: Do you see investment in Mexico from foreign
investors? Which countries are strongest?
Garcia: We do see foreign investment in Mexico; however, it
may slow due to political uncertainty. Historically, the U.S. has
always been the strongest investor. There has been an increase
in European and Asian investments. We believe that in the
short term, the U.S. will still be the main country of origin for
local investments.
CIRE: Are you seeing an increase in Mexican
investment in the U.S.?
Garcia: Now more than ever, Mexican companies are looking to
bolster their multinational presence by establishing roots in the U.S.
Recent expansions into the U.S. include Grupo Elektra, Mex-
ico’s largest electronics retailer owned by Ricardo Salinas Pliego;
Grupo Bimbo, Mexico’s largest baking company and distributor
of U.S. brands like Sara Lee, Arnold, and Entenmann’s, owned
by the Servitje family; Gruma, the world’s largest tortilla maker,
founded by Roberto Gonzalez Barrera; and America Movil, a
telecommunications company owned by Mexican mogul Carlos
Slim, the largest Mexican investor in the U.S.
CIRE: What U.S. markets are of most interest to Mexican
investors?
Garcia: Wealthy Mexican individuals and family offices have been
investing in large multifamily projects. Thousands of units across
Texas, California, and Florida have been purchased as income-
producing properties, as owners hedge their investments against
currency fluctuations in Mexico. In Florida, Mexican developers
have invested hundreds of millions of dollars in mixed-use projects,
and they are now looking at hospitality and health markets.
Coinciding with Mexico’s rapid and recent economic growth,
investors have begun to focus their investments north of the
border, particularly in cities like Miami, New York, Houston,
Los Angeles, Dallas, Phoenix, and Denver. Mexican capital is
pouring into U.S. real estate investments like never before, and
this trend is only expected to grow.
Catherine Simpson Olson is a Chicago-based writer and editor.
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