The relocation of companies, or nearshoring, is the great driver of industrial demand in Mexico and although this phenomenon is still young and has not been fully reflected in the country's macroeconomic indicators, the effect on Real Estate is evident.

It is estimated that 80 new industrial buildings are delivered every quarter and most of these properties are located in the north and Bajío, according to Intercam Banco.

“Although the industrial space of the Mexican Republic does not even reach 10% of what exists in the United States, the labor and logistical advantages are attractive. For this reason, we see the arrival of new companies in industrial buildings, but above all a great wave of expansions of already established companies,” indicates an analysis by the firm.

Of interest: Industrial rental prices continue to increase nationally

Nuevo León and its capital Monterrey are among the big winners, with more than 149 industrial parks that house 4,000 foreign companies from multiple sectors.

The continuous generation of qualified labor, as well as good technical preparation and proximity to the border, facilitate the relocation of value chains in that city.

By the end of August 2023, the Monterrey city accumulated more than 1 million 970,000 square meters of industrial space under construction, this represents 32% of the projects in progress in the entire country, according to data from Solili. Between July and August alone, more than 345,000 square meters of industrial construction began, a figure that more than doubled what was registered during the same months of 2022.

The strong demand for industrial warehouses in Monterrey is reflected in their occupancy, since they are pre-leased, even before they have been fully built.

This market dynamic has meant that the space available for the arrival of new companies remains limited, which is why developers are rushing to land new spaces.

Intercam highlights that there are almost 800,000 square meters of projects in planning that will possibly begin construction in the coming months and will be consolidated in the first half of 2024.

Check here: Industrial construction in Tijuana exceeds record level with 600 thousand m² in August 2023

Meanwhile, Solili reported that 78% of the spaces under development in mid-2023 had a lease contract prior to their inauguration,

However, the rising cost of land is a great challenge as a result of the limited excess space with access to energy and logistics infrastructure.

“These are precisely the challenges for Monterrey: expensive land and energy insufficiency, which could discourage the arrival of new investments,” Intercam noted.

Although the outlook looks challenging, Intercam shared that Tesla's Gigafactory will be a focal point for the arrival of new suppliers seeking to be part of the supply chain, which in turn could potentialize the formation of a new cluster that integrates its value chain within the country.

In Solili you can consult industrial warehouses available in Tijuana, Reynosa and Saltillo

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