b"20American Journal ofTransportation ajot.comLOGISTICS REAL ESTATE 2023 Nearshoring boosts logistics real estate marketNearshoring in Mexico is booming but a Prologis study suggest this is only the beginning.By George Lauriat, AJOTPrologis, a logistics realmanufacturers look to source estatespecialist,inJunebothclosertoconsumers released a study (see prologis. andavoidthetraderelated comImpactsofNearshor- issues between the US-China. Centerpoint Linden New Jersey development ing on Demand for MexicanThebuilt-insolutionisthe LogisticsRealEstate)onUSMCA(US-Mexico-Can-Logistics real estate: High demand,nearshoringsinfluenceonada)tradeagreementthe theMexicanlogisticsrealsuccessortoNAFTA(North estate market.American Free Trade Agree-multiple roles and scarcity of property Nearshoringandvaria- ment).[Seespecialsection The logistics real estate niche is still simmering in an otherwise tepid realtionsonthethemelikeon USMCA on pages 2 - 8].friend-shoring,hasbecome(NEARSHORINGcontin-estate market. The logic defying mystery of the market begs the question, ifa major topic as internationalued on page 24)it is still simmering in todays economic environment, what will it do in 24?By George Lauriat, AJOTThemarketforlogisticsrealestatehaslowed a disruptive cycle in the supply chain. been hot like the asphalt on a West Texas high- But this is not to say there isnt some cool-way in July. Maybe it shouldnt be. There areing in the logistics real estate marketplaceplenty of adverse indicators for the logisticsthe rapid rise in the cost of capital, stubborn real estate market just as there is for real estateinflation,slowGDPgrowth,andfallingUS in general. But like the much anticipated nextimport demand are all having an impact. As a recession, the real downturn seems to keepresult, the 4 thquarter is expected to be much getting kicked a little further down the road. cooler than the first half of 2023. According to a Certainly, there are a number of underly- recent report from Interact Analysis, warehouse ing factors at play. Take for instance, a scar- construction in North America and Europe has cityofavailablepropertyfordevelopment,declined by 25% during 2023. This after two high warehouse rents and up until recently, anyears of growth coming out of COVID. abundance of inventory vying for that spaceStillevenwithallofthesedampeninga lingering inventory reminder on the ware- factorswhich in most [possibly any other] house racks of the disorderly ordering that fol- (DEMANDcontinued on page 22)The East Coast's Premier Conferenceon Shipping, Ports, Logistics, & TradeOctober 4-6, 2023 | Norfolk, VA | VMAsymposium.com"