Nearshoring to Mexico drives the surge of industrial spaces in northern states

The industrial landscape in Mexico has witnessed an exponential surge in construction. Ongoing projects have surpassed 5,600 million square meters (m²), indicating rapid advancements fueled by the activities associated with nearshoring to Mexico.

Solili reports an expected completion of 316,000 m² of industrial developments by November 2023.

This surge primarily focuses on northern and central states, with Monterrey and Nuevo Leon leading the charge, boasting nearly 1.695 million m², surpassing Mexico City at 763,000 m². 

Remarkably, 61% of industrial project developments concentrate within three key corridors in Monterrey: Apodaca, Salinas Victoria, and Santa Catarina, showcasing robust growth by the end of 2023.

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Other cities along the northern border—Saltillo, Tijuana, and Ciudad Juárez—reported significant progress, with industrial developments reaching 548,000 m², 435,000 m², and 412,000 m², respectively, by November's end.

The northern states remain a hotspot for nearshoring to Mexico, driving real estate developers to compete in offering available spaces with substantial progress.

Ramos Arizpe leads construction in Saltillo, while Tijuana's industrial landscape extends across Pacifico-Nordika, Insurgentes-El Aguila, and El Florido-Boulevard 2000 corridors.

Nationally, areas under industrial construction represent approximately 6% of the total inventory, surging to 11% in markets like Monterrey and Saltillo.

Mexico City sees 52% of ongoing projects concentrated in the Cuautitlan, Tultitlan, and Tepotzotlan corridors.

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Bajio’s automotive cluster, an important spot in nearshoring to Mexico dynamics

In the Bajio region, where there’s a development of an important automotive cluster, Queretaro leads the surge of industrial spaces with over 500,000 m² under construction, followed by Guanajuato with 357,000 m² and San Luis Potosí with 205,000 m², reflecting amplified demand in the automotive sector.

As projects continue into 2024, the challenge lies in efficiently providing essential infrastructure services such as water and electricity. This step is crucial for major industrial markets to achieve their developmental potential and address demand effectively, aiming to prevent substantial declines in industrial vacancy rates, as concluded by Solili.

The momentum from nearshoring activities signals a promising future for Mexico's industrial landscape. The surge in construction, especially in the northern states, underscores their pivotal role in the country's industrial evolution.

This industrial surge signifies the collective effort to optimize operations and harness the benefits of nearshoring in Mexico, solidifying the nation's status as a burgeoning hub for industrial growth. 

In this context, Frontier Industrial guarantees to provide industrial land for sale, buildings for rent, and tailored projects (Build-to-Suit projects) covering all needs of companies looking to relocate operations in the country. Please contact us if this fits your requirements.