FTZs and borderless businesses in LATAM: opportunities for Industrial Real Estate investment

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Countries such as Colombia, Mexico, Panama and Costa Rica have developed extensive networks of FTZs that have attracted billions in investment and generated hundreds of thousands of jobs.

Free Trade Zones (FTZs) are designated geographic areas where companies can operate with special tax and regulatory benefits. In LATAM, they have become an integral part of global trade, driving foreign direct investment and economic growth.

Countries such as Colombia, Mexico, Panama and Costa Rica have developed extensive networks of FTZs that have attracted billions in investment and generated hundreds of thousands of jobs.

In Colombia, FTZs represent 9.5% of GDP and have attracted more than $44 billion in investment since 2007.

The tax incentives, streamlined procedures and legal security offered by these zones are attracting manufacturing, logistics and technology companies from around the world. As a developer, you have the opportunity to meet this growing demand with innovative, interconnected projects tailored to the specific needs of these sectors.

In addition, FTZs are fostering the development of specialized industrial clusters. From electronics, life sciences, semiconductors to auto parts, these clusters are creating economies of scale that demand the construction of tailored industrial parks. If you can anticipate and meet the unique needs of these clusters, you will be in a prime position to capitalize on this trend.

Logistics connectivity is another key factor to consider. FTZs are often strategically located near ports, airports, and other key infrastructure. This makes them ideal locations for the development of state-of-the-art distribution centers and logistics hubs.

The boost to international trade provided by FTZs is also generating a specific demand for industrial space. Companies need facilities that allow them to export and import efficiently.

As a developer or investor, you have the opportunity to shape the future of industrial real estate development in LATAM. Interconnected FTZs are creating fertile ground for innovative and high-impact projects.