Texas Industrial ViewPoint - Ties that Bind: Lone Star Industrial Real Estate and its Link with U.S./Mexico Trade February 2017
Looking specifically at trade with Mexico, CBRE Research identified 30 U.S. states that rank Mexico as a first or second export destination, while 27 states place it in the top three origins of imports.
Texas tops the export list where private industry exports valued nearly $250 billion in 2015, down from a previous all-time high in 2014 of more than $285 billion due mainly to the energy downturn. Despite a fall in U.S. dollar trade value, the flow of goods continues expanding and cargo border crossings continue setting records.
Current international cross-border trade in Texas that flows specifically with Mexico has created long-term, widespread occupier demand for commercial industrial real estate, which by CBRE’s estimates, could total more than 390 million sq. ft. of net occupied industrial space throughout Texas alone.
CBRE’s findings show that Texas plays a significant role not only as direct consumer and supplier to Mexico (accounting for as much as 234 million sq. ft. of industrial stock) but also as a major distribution hub for the out-of-state flow of goods, which supports up to an additional 160 million sq. ft. of Texas industrial real estate.