Industrial warehouses

Nearshoring to drive the construction of 8 million square meters in Mexico

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The landscape of industrial real estate is being boosted due to nearshoring to Mexico initiatives and activities, which fuels the development of 50 new industrial parks in the northern and central regions of the country, marking an impressive addition of over 8 million square meters of industrial building space.

This insight was shared by the Mexican Association of Private Industrial Parks (AMPIP). Claudia Esteves Cano, the association's general director, said these undertakings have already attracted investments surpassing US 3,000 million dollars.

“The investment has primarily been directed towards establishing factories, distribution centers, and warehouses catering to various companies,” highlighted Esteves. 

Forecasts suggest that the demand for these facilities is expected to surge to approximately 6 million square meters by 2027. Esteves, spokesperson of the AMPIP, added that these industrial clusters are at various stages of development, with some slated to start operations in 2024 or 2025.

However, Esteves explained that this trend is not mirrored in the country’s southern region, primarily due to the need for more infrastructure development.

“There's a shortage of new industrial parks in the south, barring Merida, in Yucatan state, which has demonstrated its suitability in attracting and accommodating logistics companies,” Esteves explained.

Esteves emphasized that this situation stems from something other than a lack of interest in the region but rather from the challenges posed by inefficient electricity transmission and distribution. The conditions for developing new buildings are different in Mexico’s north and central areas, where nearshoring activities have boosted the recovery of economic activities.

“It's crucial that we collaborate closely with the states to establish the necessary infrastructure for the influx of new foreign enterprises. Administrative efficiency needs to be improved for quicker implementation,” stressed Esteves Cano, according to Solili, a real estate dynamics website.

The trajectory of Mexico's industrial real estate landscape is set for a significant transformation, driven by nearshoring initiatives that seek to capitalize on the country's strategic advantages. While challenges persist in certain regions, proactive collaborations and infrastructure enhancements are pivotal in harnessing the full potential of Mexico's industrial evolution.


Electronic devices and automobile assemblers are critical industries for the attraction

While there is a need for infrastructure development to allow the southern region of Mexico to improve the attraction of nearshoring and industrial activities, the northern and central areas of the country have received different enterprises and resources. 

Electronic devices and home appliances have boosted the demand for industrial spaces in areas such as Monterrey in Nuevo Leon. At the same time, automotive manufacturing has been crucial for positioning the country among the leading producers globally, mainly due to the activities in Bajio’s region.

There, developing a solid supply chain allows original equipment manufacturers (OEMs) and auto parts providers to work together and adapt their activities to the trend of electrification in mobility.


In states such as Aguascalientes, San Luis Potosi, Baja California, Sonora, the State of Mexico, Puebla, or Nuevo Leon, various important factories develop their electric vehicles initiatives and coordinate their activities with the auto parts providers working in Guanajuato.

For home appliances and automobile manufacturers, the nearshoring to Mexico trend represents an opportunity to take advantage of the benefits that the Mexican workforce offers in terms of lower costs and specialization, as well as the opportunities for sending a part of the production to the United States market.

Frontier Industrial offers industrial buildings for rent and land for sale in the most important industrial areas, where we can also help you develop your customized Build-to-Suit projects. Please do not hesitate to contact us if your company wants to establish operations in Mexico.