New trade deal to be largely positive for real estate
The United States, Mexico and Canada have a new trade deal. Goodbye North American Free Trade Agreement. Hello United States-Mexico-Canada Agreement. The replacement of NAFTA with USMCA marks an end to the regional-trade uncertainty kicked off by the Trump administration, and it should benefit the U.S. real estate industry, according to a Marketflash report from CBRE Research.
If ratified as expected, the deal will go into effect in 2020.
“Although exact effects of the new trade deal remain to be seen, it appears that the USMCA will generally support property market demand,” reports CBRE. “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.”
In particular, the new trade agreement will have positive benefits for the warehouse sector, notes CBRE, which expects the interconnected and complex supply