A change in the commercial strategy continues to favor the industrial real estate market in Mexico, which, although before it was inclined towards investments in Asian countries, today world production and the development of suppliers clearly favor Latin America due to its cost competitiveness and delivery times.

The foregoing is clear from the 'Industrial Report for the second quarter of 2023', by Solili, in which he mentions that the elements that directly affect the country's investments are the interest rate, the exchange rate and the slowdown in inflation.

Check here: Industrial construction in Mexico experiences boom in large buildings

Regarding the activity reported in the gross demand of the industrial real estate segment, it indicated that it accumulated almost 1.7 million square meters (m2) nationwide at the end of 2Q23. Where the eight markets of northern Mexico maintain their attractiveness for the relocation and settlement of production processes of both expanding companies and tenants arriving in the country for the first time, allowing the region to concentrate 60% of gross demand. .

Despite the fact that some markets in the north reported greater demand than others during 2022, it is expected that in this year, those markets that combine factors such as proximity to the border, availability of land and the support of local governments, detonate their potential to serve companies with the need for relocation.

With respect to net demand, which takes unemployment into account, it had an increase of 8% at the national level. Both Monterrey and Mexico City registered very close values for this indicator, in the order of 260,000 m2 quarterly.

Demand in the country continues to be led by various productive sectors such as electronics, automotive supply chains, furniture manufacturing, various manufacturing, and specialized industries such as aeronautics and data centers.

“It is observed that more and more investments are aimed at completing supply chains for key industries in each market, which is reflected in an increase in the added value of production. State governments and private investment clusters are the great architects that drive this trend,” the document highlighted.

Of interest: BTS projects dominate the industrial demand of Saltillo in the first half of 2023

In turn, rental prices maintain the upward trend as construction prices continue to increase, partly due to the additional costs that industrial developers must face in terms of infrastructure to guarantee electricity and water supply. , as well as the appreciation of the exchange rate since the strengthening of the Mexican peso against the dollar has caused an annual increase of 15% in dollarized rental prices, since the prices that are marketed in Mexican pesos are now higher for those who sign contracts in Mexican pesos.

But the markets on the border, such as Tijuana and Ciudad Juárez, register the highest rental prices with 7.90 and 6.60 USD/m2/month. Monterrey, Tecate y Reynosa are also incorporated as the markets where the highest increases in industrial rental prices have been registered, while the markets of the Bajío region have registered moderate increases.

In Solili you can consult industrial warehouses available in Querétaro and Guanajuato

Original note