Trends in Industrial Real Estate in Mexico

By Eduardo Ordoñez Sawatsky | Real Estate Commercial Manager at American Industries Group®
Published 02/22/2022
Without a doubt, the pandemic that took the world by surprise in 2020 has drastically changed the ways we buy and sell. As a result of lockdowns, online sales skyrocketed, and experts expect that even after the pandemic ends, most people will continue to purchase many goods this way.

These changes in consumer behavior have required industry to follow suit, which has accelerated the disruption of supply chains, the evolution of delivery service logistics, and the automation of processes. In turn, this has created a high demand for warehousing and distribution spaces.

The country’s geographic location close to the United States and Canada has meant that many foreign companies are increasingly looking at setting operations here to engage in nearshoring or offshore manufacturing in Mexico.

offshore manufacturing in Mexico

It’s important to highlight that the industrial real estate in Mexico ended 2021 with excellent performance. National demand was sustained mainly by the Mexico manufacturing sector in the northern states, such as Ciudad Juárez and Monterrey, as well as in the Bajío region, in addition to the strong logistics market concentrated in Mexico City, Guadalajara, Querétaro.

In Ciudad Juárez, the increase in demand for industrial spaces was driven by the implementation of the United States–Mexico–Canada Agreement (USMCA). Due to the proximity of the three countries, companies in various industries, such as the automotive, aerospace, and medical sectors, are starting up business in Mexico to take advantage of all the benefits this offers.

It is also notable that Guadalajara is seeing this same increase in demand, especially in the logistics sector, as the area solidifies itself as western Mexico’s logistics hub.

What kind of industrial real estate are foreign companies in Mexico looking for lately?

Though each company is different and makes decisions based on its specific objectives, culture, capitalization, and growth projections, many are investing in speculative buildings over build-to-suit projects due to the rapid growth in specific sectors. Previously, demand had been equal between both build-to-suit and speculative buildings.

It is well-known that speculative buildings generally meet the needs of most users, though they do not always meet their exact requirements.

Because of this, industrial developers are looking for ways to offer buildings that allow for greater flexibility. In other words, buildings that are as standard as possible and can be adapted for both logistics and manufacturing uses, as needed.

Despite the current higher demand for speculative buildings, build-to-suit facilities continue to be the first option for companies with significant capital, long-term occupation plans, and specific requirements for their production processes.

Built to Suit in Mexico

As developers constantly analyzing industry trends and working to meet the market’s needs to attract investment that will generate employment and contribute to Mexico’s continued growth and development, we have observed exciting changes.

Our Real Estate team at American Industries is always ready to help meet the needs of all national and international companies in Mexico. To do this, we offer a variety of speculative options for industrial real estate in Mexico in the areas we operate (Chihuahua, Ciudad Juárez, Monterrey, Guadalajara, Querétaro, and Guanajuato), as well as build-to-suit projects, as requested.

If you would like to learn more about our real estate products or site selection in Mexico, don’t hesitate to reach out, and we will provide you with all the information you need.

Eduardo Ordoñez Sawatsky

Real Estate Commercial Manager

American Industries Group®