Insight to Mexican E-Commerce and its interaction with future industrial real estate demand

This study conducted some interviews to professionals related to the Retail Logistics Industry, and gained understanding for Mexican E-commerce. After interviewing these professionals, six reasons for the delay of Mexican E-retail were identified. The reasons are: Lack of Confidence from the User, Increasing Unbanked Population, Undeveloped Infrastructure, Captive Retail Shoppers, Lag in General Development, and Shopping as a Form of Cheap Entertainment. Reliable information helps support the fact that general lack of development for internet retail in Mexico will soon take a shift. However, in order to avoid risks related to internet retail, Mexico must develop: Better Fiscal and Credit Regulations, Improved Implementations for Telecommunication Reforms, Increased Security Issues for Package Delivery, Superior E-retail Platforms, Enhanced Mitigation of Identity Theft, Cheaper Mobile Internet, Higher Relative Value of Time, Effective Taxation of Remittances, Upgraded Infrastructure, and Less Unbanked Population. Relying on some forecasts, the expected increase in demand for Mexican Logistic Real Estate Class A between 2015 and 2018, due to e-commerce, might range between 0.98 million to 1.65 million square feet (153,290 to 91,045 square meters). Top industry executives expect that 60 % of future E-Retail operations could be hosted in the Northern part of Mexico City. A rough guess regarding the rest of the E-Retail logistic potential could be: 15 % Monterrey, 15 Villahermosa, and 10 % Guadalajara. Nevertheless, Industrial Real Estate requirements related to E-Commerce are not written on stone. The Last Mile problem could be addressed in the next ten years with large fulfillment centers located in strategic positions on the outskirts, and fully linked to a huge network of small or medium warehouses located in central strategic locations in the cities. Intensive logistic operations could leverage the expensive rents in CBDs, so that industrial sorting facilities can be located there. The computed costs for this idea could range between 122 and 74 US cents. If the idea exposed on sub-chapter 4.6 is feasible, Suburban warehouses could be less required, increasing the demand for warehouses in the outskirts.

Department dc:contributor.department

Massachusetts Institute of Technology. Center for Real Estate. Program in Real Estate Development.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2016

Author dc:creator

• Rico Celis, Alejandro

Advisor dc:contributor.advisor

• Albert Saiz.

• Center for Real Estate. Program in Real Estate Development.

Statement dc:rights

• MIT theses are protected by copyright. They may be viewed, downloaded, or printed from this source but further reproduction or distribution in any format is prohibited without written permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/106754

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/106754