Average asking rents for I&L space have risen steadily in the Americas. The U.S. and Canada have had the largest rent growth, averaging 5.0% annually since 2015, while Mexico has averaged 1.6%. Other less-mature industrial markets in Latin America—including Panama, Argentina, Brazil and Chile—have had marginal rent growth.

Growing demand for logistics space has spurred development of modern warehouses and the need for more workers. In many of the Americas markets, the labor component is one of the most critical elements for site selection—influenced by e-commerce growth, an aging workforce and rising wages. Meanwhile, supply chains throughout the Americas are linked by the distribution of goods from country to country. This is heavily impacted by labor costs, which vary widely throughout the Americas. The U.S. and Canada have the highest hourly wages for transportation & warehousing workers at US$21.94 and US$19.83, respectively. In Latin America, the wages range from US$3.00 per hour in Panama to US$16.77 in Argentina. 

Despite possessing lower labor costs and strong growth potential, most developing countries in Latin America lag in infrastructure quality. The World Bank Logistics Performance Index ranked the U.S. first in the region with a score of 4.2, followed by Canada with 4.1. Mexico, Argentina, Panama and Brazil scored between 2.9 and 3.3, while Chile scored slightly below the global average at just under 2.8.