US Commercial Real Estate Likely to Benefit from Revised NAFTA: CBRE

By Michael Tucker

The North American Free Trade Agreement's likely replacement, the United States-Mexico-Canada Agreement, should increase U.S. commercial property market demand by decreasing uncertainty about trade, said CBRE, Los Angeles.

The current NAFTA agreement facilitates more than $1.2 trillion of trade among the U.S., Mexico and Canada. Assuming the USMCA is ratified by all three countries, the new USMCA trade deal will likely take effect in or near 2020, CBRE said.

"Although exact effects of the new trade deal remain to be seen, it appears that the USMCA will generally support property market demand," said the CBRE special report, Revised NAFTA Should Benefit U.S. Real Estate. "Measurable impacts will be determined as automakers, retailers and distributors calibrate operations to align their businesses with the agreement's provisions and move forward with capital investments."

CBRE said industrial real estate is positioned to benefit most from the new trade agreement. "Since its inception, NAFTA has generated significant capital investment in U.S. industrial real estate, especially along logistics/supply chain corridors," the report said, noting warehouse inventory has increased by 3.3 billion square feet since 1994 when NAFTA came into force. "Since NAFTA took effect, complex supply chains have been established with parts often moving back and forth across borders and value added several times before being completed. Under the new agreement, this interconnectedness will be preserved in various ways."

Click here to read more.
Share this post:

Comments on "US Commercial Real Estate Likely to Benefit from Revised NAFTA: CBRE"

Comments 0-5 of 0

Please login to comment