In addition to soil conditions and energy supply, industrial development in Mexico has had to face inflation in the price of construction materials, which, in the opinion of Jonathan Pomerantz, Meor's commercial and investment director, has increased a average of 35 percent since the construction of the first project of the fund inaugurated in early 2022 in Tijuana.

“We have been stabilizing material prices for six months, but we live in an uncertain time of wars and pandemics. If there is another wave of Covid-19, if China's exports are stopped, if the end of the war in Ukraine is not reached; all that can continue to affect, "he said in an interview.

Despite the increase in expenses, mainly cement and steel, the businessman assured that the industrial real estate market in the north of the country continues to shine, since, thanks to the growing demand, rental prices have also gone up. rise.

Check here: Aptiv invests 14.9 million dollars in a new production plant in Nuevo León

The developer has detected around 18 active companies looking for buildings to settle in, half of them of Asian origin, so the need for industrial buildings will increase, as some of these companies will also bring their suppliers with them, that is, say, up to seven additional companies.

Although northern Mexico is one of the most dynamic markets for industrial development, thanks to its location close to the United States; the scarcity of land and the lack of energy facilities have been two constants that impact its growth.

The director of Meor affirmed that, although the municipality of Tijuana offers good conditions for the construction of new projects, the authorities have been overwhelmed in terms of infrastructure, so the developers must assume part of this investment.

More recently, which recently announced the construction of an industrial park to the south of the town, has also decided to install an electrical power substation to mitigate the problem and supply its tenants.

Of interest: Demand for industrial spaces breaks record driven by nearshoring

For his part, the director of Economic Promotion of Tijuana, pointed out that although energy supply can be an investment inhibitor, it is a factor that is already being worked on with the National Center for Energy Control (CENACE), the Federal Electricity Commission ( CFE) and the Secretary of Energy.

"There is a very high rate of growth, a lot of demand, that is why we are very close with them, so that it does not become an issue and that the energy supply is always tied with the demand," he said.

In this way, he argued that the municipality still has a lot of capacity to house more industrial projects. According to the official, so far this year, Tijuana has received more than a billion dollars of investment, of which 800 billion dollars corresponds to industrial development.

By the end of 2022, it is projected to materialize above 1.3 billion dollars, that is, 5% more than in 2021 and up to 15% above what was registered in 2019, prior to the Covid-19 pandemic.

In Solili you can consult industrial warehouses available in Monterrey, Saltillo, Tecate y Mexicali

Original note