What Types of FIBRAs Are There in Mexico?

Each REIT has its own characteristics and may not move in the same direction. These investment instruments target various segments of the real estate sector and are classified based on the types of properties in their portfolios, such as industrial, commercial, office, and hotel properties. Over time, specialized REITs have emerged, including those focused on self-storage and educational properties. 

Diversification: Some REITs have portfolios that encompass properties from two or three segments, making them highly diversified. An example is Fibra Uno (FUNO), the largest real estate investment trust in Latin America, which primarily holds industrial, commercial, and office properties. 

The industrial parks market performed well even during the most challenging months of the pandemic. Within this segment, there are specific specializations, such as industrial parks catering to manufacturing companies or logistics and distribution centers. Fibra Upsite specializes in developing industrial spaces for small and medium-sized enterprises through shared centers.

Commercial Centers: In the case of REITs focused on the retail or commercial center market, examples include Danhos, specializing in high-quality commercial and premier office properties, as well as Fibra Shop and more recently Fibra Soma, where commercial centers (including offices and mixed-use properties) predominate, some of exceptional quality. 

This commercial segment was heavily impacted by the closure of activities during the initial months of the Covid-19 pandemic. However, by the end of 2021, there were significant signs of recovery in terms of foot traffic to shopping centers. Although occupancy was also affected, it has gradually been restored. Office: Some REITs have a significant presence in the corporate office market. 

Examples include FUNO, Danhos, Soma, and Fibras Mty, among others. This market has arguably been the hardest hit by the health crisis and the widespread adoption of remote work due to the pre-existing surplus inventory and ongoing construction. 

While the office market in Mexico City had the highest available inventory and thus was the most affected, no office market nationwide is currently in balance, and it will take even more time to return to normalcy.