Nearshoring has sparked an unprecedented dynamism in the industrial real estate market, demanding strategic planning backed by expert advice from companies. In the first quarter of 2024, the availability of industrial spaces remained around 1.8% nationwide, with an even lower rate in the northeast, at 0.9% for Class A spaces, a figure lower than the previous year. The growing demand extends from traditional markets in the north to regions in the center and south of the country, driven by space availability, infrastructure, and talent.

The evolution of industrial processes towards higher value-added activities is seen as a future trend, promoting innovation and positioning Mexico in a privileged position. Sectors such as manufacturing, logistics, automotive, aerospace, value-added food, and energy are experiencing the greatest growth.

Corporate relocation demands tailor-made spaces, while Foreign Direct Investment (FDI) figures reach historic levels. The United States continues to lead in interest in installing plants, followed by China, Germany, and other emerging Asian players. The Mexican market, represented by Monterrey and the metropolitan area of Mexico City, reflects continually expanding activity, with an increase in gross and net absorption, as well as an increase in weighted average prices.

Future Prospects include an increase in space marketed in the northeast, driven by several projects in the process of closure. An increase in rental prices and an increase in industrial inventory, especially in space under construction expected to be completed soon, are anticipated. In Mexico City, the manufacturing industry remains a key sector in formal employment, while the industrial market shows a reserve of developments focused on submarkets in the CTT zone. Rental prices are expected to continue to rise, despite occasional vacancies, and developments based on the Last Mile model are expected to continue diversifying into industrial spaces within the city.

Source: https://shorturl.at/bkmy1