The tokenization of industrial land and commercial real estate has emerged as a groundbreaking approach, redefining how properties are owned, traded, and accessed.
This innovative concept offers a myriad of opportunities, from enhanced liquidity to global accessibility, yet it also presents a unique set of challenges.
In this article, we delve into the opportunities of tokenized real estate in Mexicali, exploring the benefits, challenges, and transformative potential of this disruptive trend in the real estate industry.
The industrial sector, in Mexicali, long known for its tangible machinery and physical assets, is undergoing a silent revolution driven by blockchain technology. Industrial asset tokenization, the process of digitizing ownership of physical assets onto the blockchain, is rapidly transforming how we own, manage, and interact with these critical components of our economy.
Tokenization of Industrial Land. The Benefits.
Tokenization has the potential to unlock significant benefits for industrial land investors in Mexicali, making this historically exclusive sector more accessible. Here’s why it’s generating excitement:
1.- Fractional Ownership. Instead of needing vast sums to buy plot o industrial land, tokenization allows you to invest with much smaller amounts. This opens the door to a wider pool of investors who might have been priced out of this lucrative market.
Digital asset tokenization shatters the barrier of high-value assets by enabling fractional ownership. Imagine co-owning a factory or a renewable energy project, democratizing access, and unlocking new investment opportunities.
2.- Potential Liquidity. While real estate is generally illiquid, tokenization may offer more options. Depending on the platform, secondary marketplaces can provide potential avenues to sell your tokens if you need to access your investment sooner than a traditional sale process would allow.
3.- Enhanced Transparency. The blockchain acts as an unchangeable record of ownership. This reduces the potential for disputes, creates a clear ownership history, and can streamline transactions compared to a traditional real estate model.
4.- Global Reach. With tokenization, investors worldwide (where legally allowed) could potentially buy into prime commercial properties. This removes geographic limitations and expands the pool of potential capital for such projects.
Friction in cross-border trade due to paperwork and regulations can be minimized. Real-world asset tokenization offers standardized, tamper-proof records, simplifying compliance and facilitating smoother global trade flows.
5.- Enhanced Liquidity. Traditionally, trading industrial assets was cumbersome and illiquid. Tokens, however, facilitate seamless movement of ownership, opening doors for secondary markets and increasing liquidity for asset owners.
6.- Streamlined Operations. Smart contracts, self-executing agreements on the blockchain, automate various processes. Imagine automatic payments triggered upon delivery or preventive maintenance initiated based on sensor data, resulting in cost savings and operational efficiency.
7.- Global Trade. Friction in cross-border trade due to paperwork and regulations can be minimized. Real-world asset tokenization offers standardized, tamper-proof records, simplifying compliance and facilitating smoother global trade flows.
Tokenization of Industrial Land. Why Mexicali.
Nearshoring is promoting the purchase of industrial units in Mexicali for its proximity to the United States. The vacancy rate in industrial units in this border area of the country was 4 percent in the first quarter of the year.
The relocation of companies, production lines and supply chains in Mexicali in recent months promoted investments in the purchase and development of new industrial properties of real estate trusts.
Trusts such as Mty Fiber, Prologis, Terrafina, Mcquarie and developers such as Vesta and American Industries, have disbursed or plan to pay together just over 2,800 million dollars to expand their portfolio of spaces in Mexico.
The first quarter of this year has been one of the most active for the industrial real estate sector in matches, due to the tendency of Nearshoring in Mexico.
Mty fiber, for example, completed the acquisition of the “Zeus” industrial portfolio with 46 properties in 11 states of the Republic for 767 million dollars, encouraged by the tendency of the relocation of companies and supply chains.
Prologis, another of the winners with Nearshoring in the first quarter, announced that it will invest up to 450 million dollars in new acquisitions towards the second semester to address the deficit of industrial ships in border markets such as Tijuana, Mexicali, Ciudad Juárez, between others.
Mexicali is immersed in the Total Nearshoring Solution program, an initiative promoted by the Business Coordinating Council to turn it into a center of attraction for investments. As part of this growth strategy, the Deitac organization has attracted a significant investment in the last year, with an impressive figure of 635 million dollars for land and construction of industrial ships.
This investment not only represents a notable economic injection for the region, but also entails the creation of between 15 and 20 thousand direct and indirect jobs.
The electronic industry plays a crucial role in this transformation, with 180 manufacturing plants that have generated more than 120 thousand jobs in Mexicali. In addition, the medical device sector has attracted talent and contributed to the development of biotechnology, bioengineering, aquaculture and marine sciences.
In the aerospace field, Baja California represents 21 percent of the national sector, in this sense it covers key segments such as commercial, defense, space, load and logistics, as well as the manufacture of drones and the development of maintenance and repair instruments.
As of February 2023, the Mexican Association of Industrial Parks (AMPIP) has registered a total of 27 industrial parks in the region, showing Mexicali’s growing attraction as a destination for the industry.
With these initiatives and the support of key organizations, this city is consolidating as a strategic economic hub in northern Mexico, offering investment and growth opportunities for national and international companies equally.
At this key moment for the region, real estate market studies may detect the specific interests and needs of new investors, in order to strengthen the offer of spaces.
Tokenization of Industrial Land. Well Regulated.
The Official Gazette of the Federation included a decree to normalize transactions via metoverso, tokens and blockchain.
Its formalization in Mexico makes digital transactions in Real advance. The above is thanks to the formal change to the Code of Civil and Family Procedures, where it is contemplated in different procedures, the inclusion of digital terms, including augmented reality, virtual reality, metovers, hybrid reality and the use of tokens and tokens and Blockchain.
The same decree includes different actions for the payment of mortgage taxes through said tools. It also considers in article 23 that these means will allow to obtain the payment or priority of the credit that a mortgage guarantees or when it is aimed at the division, registration and extinction of it, as well as its nullity, cancellation or to obtain the payment or priority of the credit that the mortgage guarantees.
Its inclusion to the decree is for other relevant because it will allow the investment to be opened to other instances, beyond those who today participate in real estate transactions. Investment, aspects that can be overcome with type block chains with technologies.
In the case of tokenization, an alternative is opened to expand broker business options and real estate advisors.
In the EBook Proptech 2022 trends, it is established that this instrument opens new safe and flexible opportunities backed in real estate. Through the tokenization, a property makes it feasible to create fractions of digital assets that are negotiated and marketed through the traceability that guarantees the use of blockchain.
For this duct, investment tickets are generated for 10 thousand dollars or less, unfeasible figure in the recent past. So, technology makes it feasible the entry of new players, through transparent rules and mechanisms that avoid poor management of resources.
It is, as we share at some point, the possibility of democratizing and expanding the investment possibilities that was previously feasible for large investors.
It should not be ignored that in Latin America, the transformation of tangible assets into tokens opens the door to the financing of small and medium enterprises, as well as infrastructure projects.
It is estimated that the tokenization would leave a business of up to 4,400 million dollars in the coming years, according to a Capco firm report.
Since the beginning of its inclusion to the market, regulation has been mentioned as one of the greatest challenges for its operation, therefore, the inclusion in the decree of the Official Gazette is an advance.
In Mexico, it has been the National Banking and Securities Commission (CNBV) that has issued regulations for the issuance and negotiation of debt titles and tokens shares, which opened the door to the creation of financial solutions that allow fractionation Tokens assets, and its purchase-sale among investors.
Only it happens with crowdfunding or collective financing, an online alternative that without the participation of financial intermediaries such as banking, allows you to financially support small investors via a platform the purchase of residential assets, offices, logistics, land and other. Its operation generates specific dividends over time.
WE CAN CAN ADVISE YOU
To know the industrial lands that are available in Mexicali suitable for tokenization, get in touch with us. We offer you a comprehensive service, not only in the sale of industrial land; but also, a legal and administrative service responsible for the entire purchase process. In addition, there are incentives for the purchase of industrial land offered by the state of Baja California.
We would appreciate it if you could leave us a comment about this article. Do you think it is necessary to have an official appraisal to sell land in Mexicali? Your opinion matters to us. Thank you.
Another article from this blog that may interest you: «Why Do Large Companies Choose Mexicali For Nearshoring Operations In Mexico?»