Trends in industrial real estate in Mexico

Undoubtedly, the pandemic that stalked the world starting in 2020, came to generate great changes in our ways of buying and selling.

In view of the confinement, online sales increased enormously and it is expected that even when the contingency is completely over, most people will continue to opt for this modality.

This has forced a change in the industry that has accelerated the disruption of supply chains and evolved logistics delivery services and process automation resulting, for example, in a high demand for space to store and distribute goods.

Mexico's geographic location, close to the United States and Canada, has led many foreign companies to bet even more on the nearshoring to establish its operations in our country.

It is important to highlight that the Mexican industrial real estate market closed 2021 with an excellent performance, this national industrial demand was mainly sustained by the manufacturing sector concentrated in northern entities such as Ciudad Juarez and Monterrey and in the Bajio states, as well as the logistics segment that has been a key player in Mexico City, Guadalajara and Queretaro.

In Ciudad Juarez, the growth in the demand for industrial spaces has been originated by the Free Trade Agreement between Mexico, the United States and Canada (T-MEC) since, due to its proximity to these countries, manufacturing companies from different industrial sectors such as automotive, aerospace and medical, seek to establish themselves in our country to enjoy all the benefits it offers them.

It should also be noted that this demand has also skyrocketed in the Guadalajara region, especially for the logistics sector, since Guadalajara is becoming the logistics center of the West.

But what type of industrial real estate is it that foreign companies in Mexico are looking for lately?

Obviously, each company is different and each makes a decision based on its objectives, culture, capitalization and growth projections.

However, due to the pace of growth in certain sectors, many companies are opting for speculative rather than custom-built buildings (BTS) when previously there was a balance against this demand.

As is well known, speculative buildings generally cover most of the users' needs, although many times they are not exactly what they need.

Therefore, industrial developers are looking for ways to have buildings that can offer greater flexibility, i.e., that are as standard as possible so that they can function for both logistics and manufacturing use, as the case may be.

Even though speculative buildings are currently the most demanded, custom-made buildings (BTS) are still an important option for capital-intensive companies that plan to occupy them for a long period of time and are looking to cover very particular specifications for their production processes.

The market has mobilized in an interesting way for us developers who, day by day, are analyzing the new behaviors within the industry and working to offer what the market requires and thus attract more investment that can generate new jobs, as well as growth and development in our country.

In the Industrial Real Estate area of American Industries, we are always open to any need of the national or foreign client; therefore, we bet on having speculative buildings in the different regions where we are located (Chihuahua, Ciudad Juárez, Monterrey, Guadalajara, Querétaro and Guanajuato), as well as options of tailor-made buildings (BTS) that may be requested.

If you are interested in learning more about our real estate products, please contact us and we will gladly provide you with all the information you need.

• By Eduardo Ordoñez Sawatsky
• Industrial Real Estate Commercial Manager
  American Industries Group

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