The phenomenon of companies relocating closer to their final market, known as nearshoring, has generated several positive impacts in Mexico, such as job creation, technology transfer, strengthening of public finances, and boosting domestic supplier companies including those in the industrial real estate sector.
As external variables that have driven nearshoring, we could highlight the disruption of global supply chains experienced during the pandemic, as well as the growing trade tensions between the USA and China, meanwhile, the main internal variables include our geographical proximity to the world’s largest consumer market, the cost and quality of our workforce, numerous trade agreements with other countries, and industrial clusters developed in Mexico over the last two decades, among others.
Statistics from the Ministry of Economy indicate that Foreign Direct Investment reached $32.926 billion by the end of the third quarter of 2023, representing an annual increase of 30%, reflecting sustained confidence from foreign investors in the country’s business environment and economic stability.
Nuevo León has positioned itself as the state with the highest foreign investment in the country, thanks to numerous competitive advantages such as a skilled workforce and extensive industrial, service, and transportation infrastructure. By the end of 2023, Monterrey consolidated its position as the industrial market with the highest net absorption in the country, reporting a net absorption of 1.3 million square feet leased, constituting 32% of the national total.
That being said, there is still much to be done to maintain this positive trend as this powerful surge in foreign investment and absorption of industrial properties progresses alongside the demand for electricity, exerting pressure on authorities and government agencies to facilitate and increase investment in both generation and transmission and distribution of energy to the main destinations of this growing foreign investment.
Despite the challenges ahead, the industrial real estate market maintains its position as a solid and reliable option, proven to be resilient to various economic cycles.
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