As outlined in the Solili Industrial Report as of 1Q 2022, Monterrey looks unstoppable at the forefront of industrial demand, achieving at the end of the first quarter of the year more than double its share of what it registered in the same quarter of 2021.

Although it seemed difficult to match the figure registered in the last quarter of the year, Monterrey rose with a similar figure with 463 thousand square meters of demand, which places it 58% above that reported for Mexico City, in the same period.

Companies from the manufacturing, logistics, electronics, furniture and automotive sectors were triggers of the competition to get the best spaces within the entity.

Between January and March 2022, the largest transaction occurred in the Salinas Victoria corridor, where a furniture manufacturer of Chinese origin began construction of the first phase of its 94,000-square-meter plant, planning phase two at the end of which it hopes to build another 140 thousand additional square meters.

In turn, the construction does not stop and they manage to start 437 thousand square meters of new industrial buildings in the period, where the number of custom-made projects or BTS doubles the speculative projects for a total of 23 new industrial buildings.

See also: Demand for industrial buildings soars and grows 42% in 1Q 2022

Developers such as Stiva, Vynmsa and Avante continue to start building speculative inventory to meet projected industrial demand throughout the year.

In the period that ended, just over 112 thousand square meters were added to the inventory corresponding to seven custom-made buildings and three new speculative warehouses. However, these last three warehouses are already tenanted, demonstrating the opportunities and advantages for developers who choose to take the risk of building on their own.

This situation takes even more advantage for those who start speculative projects, since availability is adjusted downwards and by the end of the first quarter of the year it stands at 2.5%, having recorded a contraction of 30 basis points in the period.

The Salinas Victoria submarketr was one of the most active in the quarter as it concentrated 37% of the demand, surpassing Apodaca, which registered 27%.

The advantage that Salinas Victoria exhibits is that it still has a large amount of vacant land, which makes it one of the most attractive corridors for the installation of plants in industrial parks such as Hofusan and Interpuerto, which together accounted for 38% of the surfaces that construction began in the first quarter of 2022.

Of interest: Detonates construction on the border due to lack of industrial space

Regarding rental prices, this important northern market has continued to register upward adjustments equivalent to 2% in the first quarter of 2022, which represents an annual growth of 3%, to close with $4.27 dollars per square meter per month, value very close to the maximum rental price exhibited before the pandemic.

For the remainder of the year, the demand driven by both manufacturing and logistics is expected to continue as the State Development Plan 2022-2027 of Nuevo León advances.

The plan includes the construction of three more lines of the Metro, the Suburban Train, among other projects such as the Comprehensive Metropolitan Transit System, with priority in infrastructure being the Interserrana, Monterrey-Colombia highways and the expansion of the Periférico. Added to this are programs and projects such as the consolidation of the logistics hub, aiming at the border crossing to make it the most efficient and secure customs office in the country.

For all these reasons, the commitment of the main institutional developers seeks to strengthen the participation of their portfolios in the entity.