The nearshoring trend has boosted the demand for industrial spaces by companies seeking to relocate their operations in Mexico and manufacture near the United States and thus reduce costs and gain more competitiveness.

According to Luis Gutiérrez, president of Prologis Latin America, as soon as economies began to reopen in 2021 after the pandemic, there was a resurgence in manufacturing markets. Companies see Mexico as a very attractive platform to grow and have more efficient operations, based on various factors such as: the Treaty between Mexico, the United States and Canada (T-MEC), its demographic bonus and trained talent, geographic location, a developed manufacturing industry and infrastructure, to name a few.

Consult here: Industrial Solili Report April 2023, demand exceeds by 82% that registered until April 2022

“In the last three years, Prologis has had record years in terms of occupancy metrics, close to 98%, since Mexico is a great investment destination. Demand in 2020 was approximately 16 million feet in our six markets, in 2021 it doubled, in 2022 it closed at 35 million and now in the first quarter of 2023 we are seeing that the trend continues to be favorable,” he explained.

Prologis is a global industrial real estate investor, owner, operator, and developer company present in the world and located in Mexico in the markets of:  Ciudad Juárez, Reynosa, Tijuana, Monterrey, Guadalajara and Mexico City, where they have over 220 properties representing over 48 million square feet.

Nearshoring comes to be a structural change in how companies are thinking about their processes and are moving to Mexico the operations that were done in the United States or Asia. Mexico has been a power in the export manufacturing industry for many years, a sector that has become an important engine of the economy, where it has been able to form various industrial clusters, such as the automotive, electronic, medical, and aerospace sectors, among others.

In this sense, Héctor Ibarzabal, managing director of Prologis, stressed that the nearshoring phenomenon is taking place mainly due to the lack of labor that US companies have and the competitiveness of the cost of Mexican labor. As well as for the recomposition of the supply chain.

Of interest: Fibras take advantage of investment opportunities in the face of the boom in industrial demand in Mexico

Regarding the origin of the projects that are coming to Mexico, Ibarzabal revealed that the United States has almost 40% of the activity, followed by China with more than 20% and the rest of Europe.

The markets in the north of the country, especially Tijuana, Ciudad Juárez, Reynosa and Monterrey, have been the most attractive locations for receiving projects driven by nearshoring. According to Héctor Ibarzabal, they currently have 99% occupancy in the Prologis portfolio and a growth in rents of 20 percent. The total absorption was 36 million feet in 2022, where Monterrey was positioned as the "stellar" market.

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

Original note