E-commerce as an ally of real estate trusts

Due to the current situation the world is facing, e-commerce has become a strong ally for real estate trusts, maintaining growth trends in Mexico. E-commerce will be a driving force behind the sale and rental of buildings in industrial parks.

Nowadays, e-commerce serves as an important structural driver for real estate logistics, and the pandemic has encouraged it’s use as people are forced to change their purchasing habits.

In addition, e-commerce boosts demand for logistics space as goods purchased online require storage and distribution. 

Low interest rates on investment trusts

Real estate trusts have been affected by COVID-19 this year, causing a 17.06% drop in the Mexican Stock Exchange (BMV) index, compared to the BMV main stock index which dropped 10.25% from January to date. However, low interest rates could bring benefits to real estate trusts. 

According to Pablo Monsiváis, an analyst at Barclays, real estate trusts are a safe investment option. In addition, with the entry into force of the United States-Mexico-Canada trade agreement (USMCA) on July 1st, the industrial sector will be one of the most attractive beneficiaries for new investors seeking to relocate production to Mexico, allowing them to maintain a complex global supply chain.

The positive outlook is based on expected dividend yields for 2021, averaging 10%, as well as low leverage levels, and encouraging trends in long-term industrial activity. 

Thanks to its strategic advantages for foreign trade, Oradel Industrial Center is an option for international companies looking to establish their manufacturing operations in Mexico.Oradel Industrial Center es una opción para empresas internacionales que buscan establecer sus operaciones de manufactura en México, ya que cuenta con ventajas estratégicas para el comercio exterior.