The strong development in northern Mexico has been the protagonist of the increase in gross industrial demand at the national level, which almost reaches 430 thousand square meters, which represents almost a quarter of Mexico's net absorption.

Monterrey is an industrial market with ample maturity and degree of institutional development, where strong groups of international and national developers compete, with the fiber portfolios having an important role in the presence of the offer, it has managed to activate the construction in an important way and at At the end of the second quarter of the year, it registered just over 1.4 million square meters advancing in various submarkets, with a large predominance of BTS projects compared to speculative ones.

Of the total under construction, only 333 thousand square meters of new construction are available, because, as indicated above, a large part of what is being built is already committed and will enter the inventory occupied once it is finished, and this amount represents 23% of constructions. in process.

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In terms of sizes, the format of 10 to 20 thousand square meters is where 14 of the 23 warehouses that are available for rent in the industrial market of Monterrey are located.

In Monterrey, 28% of the industrial buildings that are currently being built in Mexican territory are concentrated, the Salinas Victoria submarket is the most active in construction and manages to group 28% of the works in execution, followed by Apodaca where it is concentrated 26% in this important northern market.

When the focus is on the beginnings of construction in Monterrey, in the second quarter of the year, about 125 thousand square meters were started in the period seeking to reverse the strong decline in vacancy, which was adjusted downward by almost three percentage points. in the last year, to close in June 2022 with 2.46%.

When analyzing the geographical location of this vacancy in detail, we see that there are no spaces available in submarkets such as Salinas Victoria and Monterrey, which together make up 40% of the demand but only constitute 5.2% of the entity's inventories.

At the other extreme, the largest number of vacant spaces is concentrated in Apodaca, where 150,000 square meters are still available and make up 44% of the vacancies in this market.

Finsa, Prologis, CPA, Vynmsa and GP Desarrollos, among other large developers, have managed to capture the largest warehouse surfaces in this market.

Important government efforts such as the presence of the Nuevo León triple helix as part of the activities at Hannover Messe 2022 highlight the competitive advantages of Nuevo León in the industrial field, seeking to attract investment to this market.

See also: Industrial demand sets historical record in 2Q22

An example of this are the investments announced by Siemens Mexico for 35 million dollars to expand its operations, Kern Liebers, which will invest 7 million dollars to expand the production of high-precision metal parts, and Daimler Trucks, among others.

Bosch will also undertake its $260 million investment in a carbon-free facility in Monterrey, which will be located in the Parque Industrial Interpuerto where it hopes to start a first phase to produce high-end refrigerators for the North American market.

These are just some examples of the strong interest that Nuevo León and specifically Monterrey arouses in the possibilities of carrying out a sustainable investment and with the possibility of establishing the human and technological resources to successfully carry out the planned expansions or the new investments that land in this important industrial market.