Monterrey continues to be at the forefront in tenant preferences for acquiring an industrial space and this is confirmed by the accumulated demand during the first five months of 2023, which reached 536,000 square meters, a figure that represents 23% of the national total. This figure doubles that registered in the same period of 2022.

The northern region to which Monterrey belongs together with Tijuana, Saltillo, Chihuahua, Ciudad Juárez, Mexicali, Reynosa y Tecate manage to concentrate 58% of the total demand for industrial buildings nationwide, between January and May 2023.

See also: Industrial demand from January-May in Baja California doubles that registered in 2022

Developers have received the clear sign of profitability in a scenario of low vacancy and rising rental prices, amid growing demands that are extrapolated to both manufacturing and logistics.

Average rental prices have increased by more than one and a half percentage points in the last year, closing at $5.9 dollars per monthly square meter at the end of May 2023, this being the steepest increase in the last five years.

Construction activity has continued to keep pace with around one million 590 thousand square meters. Only in the months of April and May, about 175,000 square meters of new projects were started, which are integrated into the industrial constructions in process.

Salinas Victoria, Apodaca, Santa Catarina y Guadalupe accumulate 83% of the industrial buildings that are monitored in Solili during the first quarter of the year.

In Monterrey, three quarters of the projects that are built correspond to ships made to measure or called BTS.

Large surfaces characterize this group of industrial buildings where five of them exceed 50,000 square meters up to the largest with 92,000 square meters, this last Class A warehouse located on the Salinas Victoria submarket.

Another phenomenon observed in this important northern market is that the supply of warehouses of various sizes, including small, medium and large format, has expanded. The supply chains for various industries such as the automotive, furniture, metal-mechanic and electronic industries demand a large number of suppliers that seek to secure space to establish their production processes.

Of interest: Industrial Report May 2023, demand and construction triple with respect to the same period in 2022

The Government of Nuevo León begins a new tour at the beginning of May to attract investment from California, reinforcing the arrival, between October 2021 and March 2023, of more than 130 investment projects: 68 new companies and 62 expansions, which represents $11,564 millions of dollars. They also indicated that in 2023 the entity would receive 72.2% of the nearshoring that arrives in Mexico.

An example of this has been the recent investment announcements by the Taiwanese firm Quanta Computer for 1,100 million dollars, the Italian manufacturer of Brembo brake systems that estimates to invest 207 million dollars in Escobedo and the German firm Festo with the investment of 100 million dollars in Interpuerto Monterrey in the Salinas Victoria submarket, among other announcements made.

The relocation of companies has found in Nuevo León and specifically in Monterrey a suitable place that combines availability of qualified labor with the support of a government management that seeks to address the current infrastructure challenges in the midst of an institutional real estate market willing to assume the commitment to meet demand.