Shopping centers head down to Mexico.(Brief article)

With a sluggish economy continuing in the United States and a growing middle class in Mexico in need of suburban-style retail property, some of the largest shopping center developers from the United States are finding new opportunities south of the border.

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Kimco Realty Corp. and General Growth Properties Inc. have both built beyond U.S. borders while postponing new constructions or renovations of their U.S. retail properties. Kimco expanded into Mexico six years ago and now has 34 shopping centers there, compared with 809 in the United States. The company also currently has 24 Mexican shopping centers being planned or constructed, accounting for nearly 40 percent of its $2 billion construction budget, up from 20 percent in 2005.

The Mexican market especially appeals to retail-property developers for several reasons: Mexico's developing economy is gaining momentum, but the country is in great demand for malls and shopping centers. In fact, there are fewer than 1,000 malls and shopping centers in Mexico, which has a population of about 110 million.

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