In Mexico, in terms of industrial real estate supply, the pace of construction is unprecedented. Even the Barclays report, Mexican Real Estate. Nearshoring: shoring up the real estate industry, mentions that, if it stays that way, the gross leasable area (SBA) would double in the next 14 years.

Monterrey, Ciudad de Mexico, Ciudad Juárez, Querétaro, Tijuana, Guadalajara, Guanajuato, Reynosa y Chihuahua would be the markets that benefited the most and could reach the objective more quickly.

Consult here: Airport-Pharr Bridge submarket concentrates the industrial demand of Reynosa

It should be noted that the analysis suggests that in order to double the existing industrial real estate inventory, it will be necessary to invest approximately 41 billion dollars, considering a construction of up to 55 dollars per square foot, which could be achieved taking into account Mexico's positive track record.

Various documents from BBVA Research (Pension funds and infrastructure in Mexico), the report mentions these funds as a relevant tool, taking into account the recent reform in which they will contribute estimated resources of 11 billion dollars more that can be used to investments in infrastructure.

On the other hand, Barclays warns that gross absorption in the 2021-2022 period was 80% higher than its historical average, causing occupancy rates to reach never-before-seen lows; where rental prices in markets such as Ciudad Juárez and Tijuana are more than 43 and 44%, respectively, above what was seen almost ten years ago.

Announcements such as Tesla's gigafactory and BMW's expansion plans are clear indicators that offshoring is creating additional demand, while underscoring growth prospects.

Fortunately, Mexico has a positive record of private participation in the financing of concession projects, so, as previously mentioned, moving forward with an eye toward public-private collaboration in infrastructure could stimulate the construction of new industrial plants in the country.

Of interest: San Luis Potosí rises to third place in gross industrial demand of the Bajío

In the first quarter of 2023, significant investment sums have been announced, such as the case of Tesla, which will promote investments of 10 billion dollars, and that of BMW and its investment of 800 million dollars for its new plant in San Luis Potosí.

At the same time, Taiwanese electricity companies will invest 2 billion dollars in Ciudad Juárez and Chihuahua to improve the manufacture of computers and cell phones, while firms such as Foxxcon, Pegatron, Compal Electronics and Inventec will seek to increase their presence in Mexico and improve their production plants.

In Solili you can consult industrial warehouses in and Ciudad Juarez y Mexicali

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