Industrial real estate fibers are positioning themselves as one of the winning segments of nearshoring, which is why they have gone out in search of capital to prepare investments in 2023. Nearshoring, or the phenomenon of production transfer to places close to demand, implies contracts of greater gross rentable area, in the long term and with rents in dollars; an opportunity that requires investment.

“They are making long-term bets within Mexico on a larger scale to offer these alternatives to their productions in Asia or Eastern Europe. I think we're going to continue to see more of that in the coming year,” Lorenzo Berho, CEO of Vesta, an industrial fiber, told analysts and investors in October.

Mexico is positioned as a leader to capture companies that seek to change their place of initial production, among other things, due to its closeness to the US, a leading trading partner; lower labor costs, the USMCA negotiations and the attractive global environment of internet sales.

Check here: The most diverse and competitive Mexican industrial real estate market in 2023

"One of the sectors in Mexico that has benefited the most from this trend is industrial real estate," Roberto Solano, manager of Stock Market Analysis at Monex, wrote in a note.

The need for growth in the short term has led some investment trusts in real estate or Fibras to raise capital in 2022. Fibra Prologis obtained close to 396 million dollars in October, while Fibra MTY in September obtained the equivalent of 177 million dollars. 

Likewise, Fibra Nova commented to investors and analysts that it was evaluating a capital raising in the order of 3 billion pesos that it will use for the expansion of its industrial business, and for the refinancing of its debt.

For its part, Fibra Macquaire obtained on December 19 an unsecured credit line linked to sustainability for 150 million dollars.

The end of the year was marked by various acquisition and investment movements focused on strengthening the position of fibers to benefit from nearshoring.

At the end of November, Prologis closed the purchase of a couple of properties from third parties located in Tijuana, in an investment of 65 million dollars. While Fibra MTY agreed on December 21 to acquire a portfolio of 46 industrial buildings valued at 662 million dollars and located on 12 different markets.

Fibra Nova announced on December 26 that it will develop industrial warehouses for the automotive component manufacturer ZF Electronics Systems in Ciudad Juárez, in a construction that would be carried out in two phases, during 2023 and 2024.

Of interest: Speculative industrial construction is reactivated in Tijuana due to almost zero vacancy rates

Not only has the effect of nearshoring impacted the trust sector, but the sector in general has benefited from a growth rate of 10.2% in recent years, highlighting the North, Bajío and Central areas of the country. Added to this are the inflationary pressures that affect income increases of 23.9%, 22.5% and 19.5% in these aforementioned regions.

In 2023, an attractive environment is expected for fundamentals related to nearshoring in Vesta, Fibra Prologis, Fibra Uno, Fibra Nova, Fibra MTY and Terra, Armando Valdez, CEO of Smith & Locke Capital Brokers, mentioned to Bloomberg Línea.

In Solili you can consult industrial warehouses available in Monterrey, Querétaro, Guanajuato and Saltillo

Original note