CBRE PowerPoint Presentation Template - Archive - ULI
CBRE PowerPoint Presentation Template - Archive - ULI
CBRE PowerPoint Presentation Template - Archive - ULI
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Mexico Success Stories
Panel<br />
Moderator:<br />
• Lyman Daniels<br />
(President, <strong>CBRE</strong> Mexico; Chair, <strong>ULI</strong> Mexico)<br />
Panel:<br />
• Raúl Gallegos<br />
• Palmer Letzerich<br />
• David O´Donnell<br />
(Managing Director, GE Capital Real Estate Mexico)<br />
(Vice President, Managing Director, Hines)<br />
(President and CEO, O´Donnell Mexico)<br />
<strong>CBRE</strong> | Page 2
Square Meters<br />
2001<br />
1,924,559<br />
Mexico City Office Inventory (Class A/A+)<br />
2002<br />
2003<br />
2,447,104<br />
2004<br />
2005<br />
2,705,467<br />
2006<br />
2007<br />
2,920,447<br />
2008<br />
3,043,636<br />
2009<br />
2010<br />
2011<br />
3,717,260<br />
2012e<br />
4,161,801<br />
2013e<br />
4,528,721<br />
2014e<br />
4,708,431<br />
2015e<br />
4,953,543<br />
6,000,000<br />
18%<br />
5,000,000<br />
16%<br />
14%<br />
4,000,000<br />
12%<br />
3,000,000<br />
10%<br />
8%<br />
2,000,000<br />
6%<br />
1,000,000<br />
4%<br />
2%<br />
0<br />
0%<br />
INVENTORY<br />
GROWTH<br />
1 Square Meter = 10.77 Square Feet<br />
<strong>CBRE</strong> | Page 3
Square Meters<br />
9,041,908<br />
Mexico Industrial Inventory (Class A)<br />
13,346,583<br />
17,861,004<br />
22,057,744<br />
28,929,782<br />
29,772,198<br />
30,766,577<br />
32,354,240<br />
35,000,000<br />
35%<br />
30,000,000<br />
30%<br />
25,000,000<br />
25%<br />
20,000,000<br />
20%<br />
15,000,000<br />
15%<br />
10,000,000<br />
10%<br />
5,000,000<br />
5%<br />
0<br />
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012p<br />
0%<br />
INVENTORY<br />
GROWTH<br />
1 Square Meter = 10.77 Square Feet<br />
<strong>CBRE</strong> | Page 4
Mexico’s Class A Office Cap Rates<br />
14<br />
12<br />
10<br />
Cap Rate<br />
Mexico Risk<br />
450<br />
400<br />
350<br />
300<br />
%<br />
8<br />
6<br />
4<br />
2<br />
250<br />
200<br />
150<br />
100<br />
50<br />
Basis Points<br />
0<br />
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012p<br />
0<br />
<strong>CBRE</strong> | Page 5
Mexico CRE Cycle<br />
Oversupply Recession Recuperation Expansion Oversupply Recession Recuperation-Expansion Recession<br />
Recuperation-Expansion<br />
Devaluation Crisis<br />
(Peso)<br />
The mayority of<br />
manufacturing industries<br />
relocates in China<br />
Vicente Fox wins<br />
presidency<br />
9/11<br />
Global recession takes<br />
hold<br />
Global Financial<br />
Crisis begins<br />
Mexico celebrates<br />
200 years of<br />
independence<br />
NAFTA<br />
Chiapas conflict<br />
NAFTA consolidates<br />
new firms establishing<br />
operations in Mexico<br />
Irak War<br />
Felipe Calderon wins<br />
Mexican Elections<br />
Peña Nieto is<br />
elected as Mexico s<br />
new President<br />
Class A<br />
Inventory<br />
700,000<br />
sqm<br />
First office building<br />
built in Santa<br />
Fe, average rents<br />
(US$40/sqm/month)<br />
Multiple companies<br />
closed mexican<br />
operations. Vacancy<br />
reahes 20%<br />
Torres Arcos 55,000<br />
sqm<br />
Torre Esmeralda I<br />
77,000 sqm<br />
Vacancy rate of 8%<br />
200,000sqm of class A<br />
under-construction<br />
Mexico City Historic<br />
Center re-development<br />
Class A 2.9 million sqm<br />
average office rents<br />
(US$23/ sqm /month)<br />
Torre Mayor<br />
77,000 sqm, Vacancy 20%<br />
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010<br />
Class A Office inventory grew 430% from 1993 to 2011<br />
REITs<br />
Initiative<br />
in Mexico<br />
15 new<br />
mix-use<br />
projects in<br />
Reforma<br />
Torre HSBC, first green<br />
building in Mesxico<br />
Class A<br />
reaches<br />
3.4 million<br />
sqm<br />
Class A<br />
reaches<br />
3.8 million<br />
sqm<br />
Class A<br />
reaches<br />
4.1 million<br />
sqm<br />
2011 2012<br />
<strong>CBRE</strong> | Page 6
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