Business Program

Nearshoring: Real Estate, Economics and International Business

Faculty Advisor: Lecturer of Economics, Loyola Marymount University; Lecturer of Real Estate Investment, USC Marshall School of Business

Program Start Time: TBD (meetings will take place for around one hour per week)

Research Practicum Introduction

The current geopolitical landscape between China and the US is fostering a trend towards nearshoring and logistical integration in North America. Over the past two decades, real estate investors and operators have increasingly engaged with international markets through joint ventures along the Mexico-US border. The US-Mexico-Canada trade agreement (USMCA) has facilitated this by allowing Asian companies to establish manufacturing and logistics operations in Mexico while seamlessly integrating supply chains and exports to the US, benefiting from tariff-free trade and low transportation and labor costs. Consequently, Mexico has emerged as the largest trading partner of the US. Successful real estate and logistics investment strategies necessitate a comprehensive understanding of macroeconomic trends and local market dynamics.

Throughout this program, participants will be equipped with tools to assess macro trends and identify potential investment opportunities in industrial real estate. The program adopts an integrative, practical, and innovative approach, enabling students to explore various research avenues. These include:

  • recent trends in trade between the US, China and Mexico, capital flows into industrial real estate in Mexican markets, 

  • synergies both sides of the border (El Paso/Ciudad Juarez, San Diego/Tijuana), 

  • analysis of the demand for industrial space from the perspective of the end-user, main industries involved (electronics, medical equipment, logistics and distribution etc.), 

  • China decoupling trends and other related topics.

Program Deliverables

  • Short paper (5-7 pages) with relevant support (sources should include journals, articles, investors reports and research notes). Students should include tables and graphs, and may appendix additional information if needed. 

  • 15-18 slide Power Point Presentation

  • More information will be provided

Standards of Assessment

In addition to the drafting of a short paper with relevant support students are expected to participate actively. This is an applied program, in which “in-class” interaction and hands-on work play a key role. Most of our sessions will consist of the discussion/analysis of case studies, or real-world trends. Participants are expected to read newspapers, and articles that are related to international trade, nearshoring as well as finance (Wall Street Journal, The Economics, FT, etc). Valuable class participation goes beyond a mere recitation of lecture facts, but draws significant implications, makes conclusions, or suggests actions from the facts presented. Participation should build on the comments of others.

Possible Topics For Final Project

  • Comparative analysis of industrial real estate investment trends in key Mexican markets (e.g., Mexico City, Monterrey, Guadalajara).

  • Case study on the development of logistics hubs along the US-Mexico border and their impact on regional economies.

  • Assessment of the role of government policies and regulations in shaping industrial real estate investment dynamics in Mexico.

  • Market analysis of specific industries (e.g., electronics, automotive) driving demand for industrial space in Mexico.

  • Evaluation of sustainability initiatives and green building practices in the Mexican industrial real estate sector.

  • Investigation into the potential effects of China decoupling on manufacturing and logistics investments in Mexico.

  • Comparative study of logistical challenges and opportunities in cross-border trade between the US and Mexico.

  • Or other topics in this subject area that you are interested in, and that your professor approves after discussing it with you.

Program Detail

  • Cohort Size: 3-5 students

  • Duration: 12 weeks

  • Workload: Around 4-5 hours per week (including class time and homework time)

  • Target Students: 9-12th grade students interested in international business, economics, real estate investment, policy analysis, government regulations or other related fields.