PRESENTED BY:PRESENTED BY:

221 North Kansas, Suite 2100221 North Kansas, Suite 2100El Paso, Texas 79901El Paso, Texas 79901915.585.3883 Phone915.585.3883 Phone

915.585.3911 Fax915.585.3911 Fax

Rex Maingot,CCIMSenior Vice President

rex.maingot@cbre.com

MEXICO - IMMEXLooking into 2007 & Beyond

• State of the Market – Real Estate Overview• Cap & Lease Rate - Trends • Logistical Opportunities – Ports and Rail

Maquiladoras – 2007 and Beyond

0.4M

0.3M

0.4M

2.49M

1.96M

4.25M

5.2M

Absorption3 yr

Average

01340.22M2.5%9.5MSan Luis Potosi

852221.8M14%13MChihuahua

630121.18M6.9%17MMexicali

937141.8M6.6%28MReynosa

382191.6M3.8%42MTijuana

171413453.86M6.5%51MJuarez

7128191.84M2.5%75MMonterrey

100K +60 – 90KNew SpecBuildings

BuildingsAvailable

Sq. Ft.Available

VacancySupplySq.Ft.

City

STATE OF THE MARKET - SNAPSHOT 1/June/2007

JUAREZ RENT/RATE ANALYSIS

Industry Rent Analysis

Capitalization Rate Analysis

NNN/SF/YR

CAP RATE

Toyota – Tijuana/Tecate

Electrolux – Cd. Juarez

Corning Cable Systems - Reynosa

SUPPORT INDUSTRIES

• Plastic injection molding• Metal stamping & finishing• SMT – PC Boards• Machining• Plating• Rubberized bonding• Welding• Woodworking• Wire harnesses• Logistics – Supply Chains – 3PL’s

• Shorter Product Life Cycles• Greater diversification of Products • Shift from High Volume – Low Mix to Low Volume - High Mix

These Characteristics demand shorter and more efficentsupply chains.

Market Trends

MOST POPULAR IMPORT ROUTES TODAY

NEW ALTERNATIVE ROUTES TO THE CENTER OF THE NATION (2005)

8,000 TEU VESSELSCOMING TO PANAMA

TWO 4,000 TEU VESSELS

Panama Canalat 90%Capacity

5,000 TEU’sLimit

MSC PAMELA - TOTAL CAPACITY: 9,200 TEUs

Pacific Ocean Ports

Punta Colonet$3.5 Billion USD

Logistics-Key opportunity for Mexican Ports

Port of Shenzen - China

Port of Manzanillo

Manzanillo is Mexico's principal deep-sea port handling the highest volume of cargo on the country's Pacific coast. Manzanillo is the only port in Mexico capable of double-stacking containers onto railcars, providing efficient movement of cargo by a private railroad company, Ferromex throughout Mexico and as far as the Texas border.

The port is strategically located to handle international commerce with the countries located along the Pacific Rim. It also constitutes an ideal point for transshipment for Central and South American countries. Currently 26 shipping lines regularly call on the Port of Manzanillo which connects us to 74 destinations in the world.

Annual Container Volume = 875,000 Teu’s

Expansion of Container Terminal = $200 Million USD

Port of Lazaro Cardenas

The Port of Lazaro Cardenas is the deepest port in Mexico. Its access channel has a depth of 54 ft, which allows the arrival of ships of up to 150,000 tons. The three largest shipping companies, CP Ships, APL and Maersk Sealand have regularly scheduled service. The main products being imported / exported include steel (related to machinery, auto parts, motors and equipment and construction), petrochemical products, turbines and electric components.

Lazaro Cardenas is the starting point of the LazaroCardenas-Kansas City Corridor, which is a trade route linking key Asia-Pacific suppliers to Kansas City via a ships-to-rail terminal. This trade route is a good alternative for shippers seeking to avoid the West Coast bottleneck. The port is in the midst of a 20-year, US$290 million program that will expand the existing terminal to include a 4,887-foot berth, and a channel 59 feet deep capable of accommodating four ultra large container vessels (ULCVs) simultaneously.

KSC = 2.5 million containers/year

Kansas City Southern &Port of Lazaro Cardenas

• KCS Investment = $1.5 Billion• Hutchison - $200 Million Terminal underway• Initial Capacity = 2.5 million containers/year• Unloading cost = 30% of LA & Long Beach• Projection 2030 = 6 million containers/year

KANSAS CITY SOUTHERN - RAIL CORRIDOR

400 MILES less than from LA

200 MILES more than from LA

HOUSTON

CHICAGO

PORT OF LAZARO CARDENAS

Speed to marketFrequency

Reliability

Parque Logistico - SLP$ million Investment

Guanajuato Inland Port (GIP)$ 100 million Investment

CB Richard Ellis is BULLISH ON MEXICO