For a business that operates around the globe, it is imperative to invest in industrial real estate in other countries. The world's leading industrial real estate markets operate actively from North America to Asia. Whether you need a base for warehousing or you need a place where you can assemble and manufacture goods, here are three markets that an international business needs to be looking at.

 

Mexico

Silence all of the discussion about China being the world's factory. Looking at the cars you drive, the TVs you watch and the airplanes that carry you from place to place will provide a more nuanced view. Chrysler, Ford, Nissan and Volkswagen cars, Samsung and Panasonic television sets, Dell computers, and parts for the Boeing 787 Dreamliner all share a common country of origin: Mexico.

Mexico has a stable legal system, a history of government stability and respect for private property, making it a safe place to do business from a legal perspective. Copyrights and intellectual property are also safe in Mexico. The country features an excellent network of toll highways, privately-managed airports, ports on both the Atlantic and Pacific oceans as well as broad availability of industrial real estate. Its location is also unbeatable: an American executive can be at a factory in Tijuana's industrial zone in 30 minutes' drive from downtown San Diego.

 

Mexico graduates three times as many engineering students per capita as the United States - so a skilled workforce is readily available. A total cost of employment around $6 per hour makes Mexican labor competitive with the Chinese market, and frequently with higher productivity.

 

Germany

Germany is still renowned for its overall skill at precision manufacturing, but it also shines as prime location for European distribution. Warehouse industrial real estate in Germany follows the old adage of "location, location, location." Its central location in Europe means that a German logistics center can serve much of Europe within a 12 hour truck ride, including London. Given the eastward shift of the European population, Germany is particularly well-sited.

To support logistics in Germany, the country contains an excellent road and rail network. Using German and European rail, most of the population of Europe is within a 30 hour train ride, including Eastern European countries. The country also offers both seaports on the North Sea and Baltic Sea as well as inland water links, making shipping another option for low-cost delivery of goods. 

 

Indonesia

The availability of low-cost shipping bolsters the island nation of Indonesia into a desirable industrial real estate destination. Already one of the leading manufacturing markets of the ASEAN economies, Indonesia is beginning to branch out from its Asian base. While major Asian companies like Suzuki and Hon Hai (Foxconn) are investing in the country, it's also attracting investment from European companies like L'Oreal and Volkswagen.

With 240 million people on its own and proximity to growing Asian markets like India, Indonesia is well-located. It also has a relatively low-cost workforce and the government is stable and financially sound. While the country has had financial trouble in the past, it currently sits on $93 billion of currency reserves and its debt has received investment grade ratings from two of the three major United States bond rating agencies.

 

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