Monterrey surprised with the rapid increase in construction during the first two quarters of 2022, which at the end of 2Q 2022 amounted to just over 1.4 million square meters advancing in this market.

Considerations of strong demand pressure in the northern markets led Monterrey to gross absorption figures of 463 and 430 thousand square meters, during the first and second quarters of 2022, respectively.

These amounts represent increases in demand of almost double for the first quarter of the year and 37% for the second quarter of 2022, if we compare them with the same periods of 2021.

To put into context the growth of gross demand in Monterrey two years ago this market demanded 65% of what Mexico City registered, now at the end of 2Q 2022 the situation is the opposite and with a more pronounced difference, today Monterrey registers a 150% of the absorption recorded by the country's capital.

Check here: Greater increases in industrial rental prices are projected for the remainder of 2022

This strong increase in the slope of gross absorption combined with a marked decrease in vacancy, of almost 3 percentage points in the last year, has been the trigger for the industrial construction drive that Monterrey reflects.

Salinas Victoria and Apodaca submarkets concentrate 65% of the industrial buildings that are advancing in this northern market, where developers of the stature of Vesta, CPA, Vynmsa, Meor, Stiva and Davisa offer as available spaces the options of greater footage that range from 15 to 25 thousand square meters.

When we focus on the composition of the constructions in terms of areas, three quarters of the warehouses that are built are custom-made projects, however, if we analyze the number of projects, the custom-made warehouses or BTS exceed 30% to speculative projects.

As for the available warehouses, sizes from 10 to 20 thousand square meters lead the market, while the warehouses that are currently being built cover a wide range of sizes where you can find warehouses smaller than 10 thousand square meters, up to large formats of more than 40 thousand square meters that correspond to BTS projects.

Of interest: 3.5 million m² of industrial buildings were leased in the country during the first half of 2022

Monterrey has managed to combine an integral development not only of its industrial offer, but also residential and corporate endowments and complements for commercial, recreational, educational and assistance uses that, although they must overcome important problems, such as the supply of waters, remain at the forefront of sustained demand compared to other entities in the country.

Nuevo León, and its capital Monterrey, were in second place after Mexico City in the State Competitiveness Index (ICE) 2022 issued by the Mexican Institute for Competitiveness (IMCO).

Among the first five positions at the national level, the following stand out: Sustainable Management of the Environment, Use of International Relations, Efficient and Effective Governments, Innovation of Economic Sectors, Stable Economy, World Class Precursor Sector and Market of Efficient Factors, which makes this market a safe bet for industrial investment portfolios.