Since 2019, investments from Asia have played a significant role in the demand for industrial space in Mexico. By the end of 2023, the occupancy of industrial warehouses due to nearshoring reached nearly 1.7 million square meters, representing a 5% increase compared to 2022, according to CBRE Mexico data.

During the period from 2019 to 2023, China led investments in Mexico, accounting for 40% of the total demand for industrial space. This was followed by the United States with 22%, and in third place were Germany and Taiwan with 9% and 8%, respectively.

The industrial market experienced a 16% increase in net absorption, largely driven by the delivery of pre-leased properties to meet the growing demand from domestic and foreign companies. This growth also resulted in a 2% decrease in average availability nationwide.

The impact of the Treaty between Mexico, the United States, and Canada, along with disruptions in supply chains, has contributed to the rapid growth of nearshoring in the Mexican industrial market, as noted in the CBRE report.

In terms of sectors, the automotive industry led the demand for industrial warehouses for nearshoring in the country last year, particularly in the major markets of the northwest and Bajio. Meanwhile, the electronics and appliances sector dominated activity in the industrial real estate segment in the western and northwest regions.

The northern border continues to be the most dynamic in terms of gross absorption or commercialization of industrial spaces, accounting for 84% of the total in 2023. Ciudad Juarez, Chihuahua, stood out as the primary hub of nearshoring activity last year, with over 444,000 square meters registered.

The acquisition of build-to-suit (BTS) properties for end users has been a consistent trend in recent quarters, thus driving the real estate sector in the region.

Source: https://bitly.ws/3hShk