We still have a few days to finish the third quarter of 2021 and the industrial real estate market has continued its progress with a growing industrial demand at the national level that already during July and August reached 65% of what was registered during the second quarter of the year .

Analyzing the demand of the border cities that Solli monitors, such as Ciudad Juárez, Tijuana, Mexicali and Reynosa as a whole, they total 218.5 thousand square meters, which represent 43.2% of the total national demand.

If we add the northern cities of Monterrey, Chihuahua, Tecate and Saltillo, the percentage rises to 70%, Monterrey being the most prominent case that recorded a gross demand of 103 thousand square meters during the month of August 2021.

Another indicator correlated with gross demand are the preliminary figures for Foreign Direct Investment (FDI), which during the first six months of 2021 registered 18 thousand 433.5 million dollars, 2.6% above the investment captured in the January-June period. 2020.

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Historically, the northern and central areas of the country have received the most FDI. During the first semester of 2021, Mexico City received 18%, while Baja California, Nuevo León, Chihuahua and Guanajuato received 9%, 8%, 6% and 6%, respectively.

Regarding the origin of these capitals, the United States leads with 51%, followed by four European countries such as Spain with 9%, United Kingdom 6%, Germany 6% and Luxembourg 5%.

Motivated by the reconfigurations of supply chains and the strong presence of American capital in investment in Mexico, ideal conditions are created that can be implemented through the T-MEC to facilitate the stimulating effect that has been observed at the border.

Tijuana and Mexicali report the highest demands on the border so far in the third quarter, with a pair of BTS projects of 52 and 47 thousand square meters, Class A.

These operations are located on the Pacifico-Nordika submarket, in the Tijuana market and in Mexicali on the Mexicali-San Luis Río Colorado Highway.

So far in 3Q 2021, the gross demand in Reynosa has been marked by the expansions of companies already established in the north.

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Regarding the constructive modality, in Tijuana and Mexicali the BTS predominate, while in Ciudad Juárez and Reynosa there is also a good participation of speculative projects in the demand of July and August 2021.

The border will continue to advance in its dynamism of demand and construction in the remainder of 2021 and 2022, as various global companies seek to maintain a competitive position in the North American region.

Therefore, strategies such as nearshoring in Mexico, which consists of the relocation of part of the production to the country closest to the consumer market, in this case the United States, will continue to be elements that underpin demand.

In conclusion, the Mexican cities neighboring the United States will continue to be a pole of attraction for investors and manufacturing companies in the automotive, aerospace and medical sectors, particularly in tailor-made or Build-to-Suit projects.