McAllen generates 30–40% of total retail sales from Mexican nationals — primarily from Reynosa (immediately across the river, population 700,000+) and Monterrey (Mexico's third-largest city, 5M+ residents, 3 hours south). These shoppers cross specifically for American brands, electronics, clothing, and consumer goods unavailable or significantly more expensive in Mexico. When the peso is strong, Mexican shopper traffic surges. This cross-border demand is structural, not cyclical — it predates the nearshoring boom and will persist regardless of macroeconomic conditions on either side of the border.

Cap rates projected to compress toward 6.5%–7.0% over the next 12 months as national capital discovers the RGV's structural retail story. Cross-border shopper demand and H-E-B-anchored suburban centers compress fastest. NNN investment-grade product already trading below 6.5%.

H-E-B operates 20+ stores in the RGV — including several of the chain's highest-volume locations globally. La Joya, Edinburg, McAllen, and Pharr H-E-B stores serve cross-border Mexican shoppers who specifically shop H-E-B for quality and selection unavailable in Mexico. H-E-B anchor adjacency in the RGV generates even stronger co-tenancy premiums than in San Antonio or Houston because the cross-border shopper base amplifies foot traffic far beyond the American residential population base.