5/12/2024
Logistics activities are driving the industrial buildings for lease activities across various regions in Mexico, particularly in the northern states and Mexico City.
Nuevo León's strategic location and Monterrey's industrial market enhance Mexico's capacity to establish itself as a regional logistics hub, especially due to the dynamics of the automotive sector.
Despite announcements by U.S. President-elect Donald Trump regarding tariffs on cars manufactured in Mexico with Chinese technology, the presence of robust supply chains remains an advantage for the Latin American country.
Moreover, with manufacturing leading the activities that attract Foreign Direct Investment (FDI) through nearshoring in Mexico, along with the country’s skilled labor force, trade between the two nations will require strengthening distribution operations to the United States.
Monterrey: A key player in industrial real estate for logistics and industrial buildings’ leasing
Apodaca, Ciénega de Flores, Escobedo, and Guadalupe—industrial submarkets of Monterrey—stand out in terms of construction of industrial-use spaces.
According to Obras por Expansión, 48% of planned buildings in Apodaca are designated for logistics activities. Beyond the automotive industry, the rise of e-commerce has had a direct impact on this trend: in 2023, Monterrey reported 1,197,559 square meters of projects starting construction, contributing to a total industrial area of 15.579 million square meters.
Logistics growth in Monterrey is second only to Mexico City's industrial market. At a strategic moment for the industry, Nuevo León is preparing a dedicated logistics cluster, according to Líder Empresarial.
“The logistics aspect is fundamental. It impacts all sectors, it’s evident.”
Diana Vidal, Director of Clusters, Mexico’s Ministry of Economy.
Though still in the planning phase, Nuevo León's new industrial cluster will be the 14th in the state, serving as a support element for other industrial activities.
Manufacturing: a key driver for logistics an the industrial sector
In 2023, demand for industrial-use spaces in Monterrey exceeded 2 million square meters, according to Javier Lomelín, CEO of Colliers Mexico.
The projection for 2024 is to surpass that figure, thanks to manufacturing and logistics activities in the region. Achieving this goal will require overcoming challenges such as energy supply and water availability, areas where authorities are focusing their efforts.
Industrial property Leasing: A Challenge amid expansion
Lomelín points out that the constant growth in various markets is most notable in the Monterrey-Saltillo corridor, which reports 1.8 million square meters annually, according to El Economista. Other regions also report significant industrial space figures:
- Monterrey-Saltillo: 17 million square meters.
- Mexico City and Metropolitan Area: 16 million square meters.
- Bajío Region: 17.5 million square meters.
- Guadalajara: 8 million square meters.
Despite this supply, the current demand is so high that the national industrial vacancy rate is around 3%, according to Lomelín. This tight market is driving up rental prices.
In logistics and industry, Monterrey and Mexico face the challenge of maintaining construction rates that can meet demand, particularly as the nearshoring trend and the arrival of foreign companies continue. The Mexican Association of Private Industrial Parks (AMPIP) forecasts the arrival of 100 new companies by 2025.
Frontier Industrial: Making nearshoring to Mexico easier
Frontier Industrial offers industrial land for sale and industrial warehouses for lease in Mexico's key markets, including our Frontier Escobedo Industrial Park in Monterrey. It provides the infrastructure and services needed for your company to start operations seamlessly.
If your company is looking for space to establish operations in Mexico, don’t hesitate to contact us and ask how we can help develop your project.
