Credit Suisse has published the 1st edition of its Nearshoring Tracker in Mexico, where it will report monthly on the most relevant news and data on this macro-trend, which is a potential engine of long-term growth in various national industries, one of which is real estate.

This computer coverage also includes valuations on various real estate operators in Mexico such as: Vesta, Fibra Uno and FibraMQ.

Check here: Industrial development seeks to grow in alternative corridors such as Toluca, Zumpango and Huehuetoca

Nearshoring is increasingly becoming a driver of greater net absorption of industrial space in MX: according to CBRE, it went from 8% of demand in 2019 to 40% in 1Q22.

Some economic indicators also suggest that it is already being reflected in exports, FDI and employment; however, the report acknowledges that more work is needed to attribute this directly to nearshoring. For example, exports of intermediate goods grew 26% year-on-year (10% in real terms, adjusting for the US PPI) in 1H22, and increased 35% nominal/9% real compared to 2019 levels.

Since the beginning of 2021, Credit Suisse has been monitoring announcements of potential new investments related to offshoring. The findings suggest a strong acceleration, both in terms of frequency and average number of ads.

Of interest: Monterrey's industrial demand continues to be driven by BTS of manufacturing companies

So far this year, $16bn in potential investment has been identified (vs. $13.7bn in new FDI in 2021 and $1.5bn in 2021 announcements), of which $12.7bn is from new participants.

The US Transportation team highlights offshoring as one of the main drivers of the long-term upside potential of US rail names in its recent industry start. Additionally, the TI hardware team, in its own industry launch, touched on electronics manufacturers relocating from Asia to the US and Mexico.

In Solili you can consult industrial warehouses available in Monterrey, Saltillo and Ciudad Juárez

Original note