12/09/2024
According to Market Analysis, a market intelligence company, the industrial park in Monterrey continues to show strong momentum at the beginning of the second half of 2024, with a vacancy rate of 1.18%.
As Mexico's most important industrial market, the increase in space demand has driven the construction of new infrastructure and the delivery of industrial facilities, raising the previous vacancy rate, which was 0.91% in the first quarter of the year (January to March).
This construction boom has increased speculative warehouse projects, with approximately 570,055 square meters under development. Many Build-to-Suit (custom-built) projects are underway, with more than 411,000 square meters in progress.
Automotive and logistics industries lead absorption
Among the sectors with the most activity and space absorption in the Monterrey industrial park, the following stand out:
- Metalworking industry
- Logistics
- Automotive production
- Food industry
- Plastics industry
The Monterrey market attracts companies from various origins due to the nearshoring trend, its proximity to the United States, and the availability of a skilled labor force for the manufacturing sector.
In this context, the United States leads the list of investing countries in the region, accounting for 49% of space absorption during the first half of the year. Mexican companies (14%), Argentine (14%), and Chinese (10%) follow.
Source: Market Analysis
According to El Economista journal, manufacturing, and logistics accounted for 77% of the gross absorption (occupancy) at the end of the year's second quarter.
Infrastructure Boosts the Industrial Market's Dynamics
Demand in this northern Mexican market has grown, mainly driven by pre-leases and Build-to-Suit projects, which represent 67% of the total.
Foreign Direct Investment has also shown positive figures in this market: Monterrey ranks as the country's second-largest market for investment attraction, with $1.351 billion during the first six months of 2024.
Source: CBRE
Favorable Outlook Due to Inventory Growth
According to CBRE, the continuous rise in industrial space construction, coupled with the end of electoral processes in Mexico, opens the door to further expansion of business activity in the Monterrey industrial park.
During the first half of the year, construction expanded infrastructure to a total of 15.3 million square meters, reflecting the growth of the industry and the region's economy, according to Ramón Flores, Executive Vice President for the northeastern region of CBRE Mexico.
Frontier Industrial is driving the growth of the industrial sector in Mexico by developing infrastructure with the highest quality standards in the country's most important regions, such as the Monterrey Industrial Park.
Contact our team to learn about Class A industrial warehouses for lease or to develop your project with us.
