The growing interest of institutional investors in Mexico seeks to diversify portfolios with real estate due to the low profitability of global financial assets.

The pandemic has once again turned its gaze to real estate investments but not all sectors have reacted in the same way to the crisis.

Segments such as corporate rent that in many markets in North America, Latin America and Europe carry the oversupply, will have to undergo various reconversions and adaptations to be able to capture the demand that resurfaces from the return to economic activity, with everything and the adaptations that we will have to transit after the appearance of the variants of Covid-19.

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However, the industrial real estate sector has gained prominence based on the constant increase in demand and the maturity of the business fabric of developers in the country.

Only in the first semester of 2021, the demand of the main industrial cities of the country, such as Mexico City and Monterrey reported gross demand levels of 549 thousand and 468 thousand square meters, respectively. The semester figures are 39% and 55% higher than those registered in those markets during the first half of 2020.

This growth corresponded to various expansions of industrial space by companies established in the country and accounted for as new investments.

That is why, given the looming economic recovery outlook, this growth will continue in the remainder of 2021 and during 2022.

This is outlined by the Global Economic Activity Indicator registering an advance of 23% during the month of May 2021 spinning its third month of growth.

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In recent months we have seen important movements in new acquisitions by institutional investors such as Fibra Prologis with recently acquired industrial properties in Ciudad Juárez and Monterrey.

Also noteworthy are the various plant expansions and arrivals of new participants in cities such as Guanajuato, San Luis Potosí, Guadalajara, Monterrey and Saltillo, many generated by automotive manufacturing and which have been driven by the management of the first year of the T-Mec. .

Various regional investors have made their bets on large surfaces that are being developed modularly and where the incorporation of great heights and constructive characteristics and competitive technological incorporation with American industrial buildings is observed.

The outlook under these events looks promising, the only thing left to do is go down the path of compliance by the Mexican government with the commitments in labor matters, environmental and energy.

All of these are the key factors for Mexico to continue its competitive position as the ninth economy in preference to Foreign Direct Investment.