Given the significant growth of 21% in industrial demand that has been registered in the Mexican territory during the first half of 2022, compared to the same period in 2021, developers put the accelerator on new industrial projects that seek to meet demand.

With a quarterly demand of more than 1.8 million square meters at the end of 2Q 2022, there are five entities that concentrate 73% in this indicator, led by Monterrey with 429 thousand square meters and followed at a distance by Mexico City with almost 287 thousand square meters. Guanajuato, Saltillo, Querétaro and Ciudad Juárez complete the group with quarterly demands of 228, 190, 109 and 95 thousand square meters, respectively.

Mainly, it is on these markets that the greatest construction activity has been generated, which in absolute terms are concentrated by the aforementioned entities where demand has been boosted.

Monterrey surprises with the progress of more than 1.4 million square meters, followed by Mexico City with 678 thousand meters that are executed in various construction phases. Querétaro, with 470,000 square meters of industrial construction, presents levels similar to Ciudad Juárez and Guanajuato, with 434,000 square meters, in each of these markets.

Check here: León-Silao is the most requested submarket in Guanajuato by manufacturing and logistics companies

Tijuana and Guadalajara also show a lot of dynamism in construction by carrying out industrial projects for 391 and 302 thousand square meters, respectively.

If the analysis of construction progress as of 2Q 2022 is carried out in terms relative to the figures recorded in the same quarter of 2021, the Reynosa, Querétaro and Monterrey markets reflect increases of 266%, 175% and 160%, respectively.

As can be seen, the eight markets of the northern border that Solili monitors concentrate 57% of industrial constructions at the national level, followed by the Bajío, which as a whole groups 22% nationally.

If we analyze the case of Monterrey, various developers such as Prologis, Vesta, CPA, Vynmsa, Meor, Stiva, American Industries, among others, are an example of the strong competition in the development of speculative warehouses that range in size from 4.2 to 27.6 thousand square meters. . Of these available spaces, just over 60% corresponds to the size of 10 to 20 thousand square meters.

Speculative construction makes up almost a quarter of all industrial construction in this outstanding market where bespoke projects or BTS dominate the scene. In this modality, about 45% of the areas of the warehouses that are built are between 20 and 100 thousand square meters. In the specific case of Monterrey, only two large-scale projects for the manufacturing sector make up 17% of the constructions in the market.

Salinas Victoria and Apodaca account for almost 65% of construction in the Monterrey metropolitan area market.

Of interest: Chinese appliance manufacturers move to Nuevo León

Mexico City has also registered a growth of 55% if the amount that was built at the end of 2Q 2021 is compared to what was registered at the end of 2Q 2022, where it reaches 768 thousand square meters.

The submarkets of Tepotzotlán, Toluca y Tultitlán remain at the forefront with 219, 210 and 150 thousand square meters that make up three quarters of the industrial buildings located above Mexico City.

In conclusion, the pandemic provided Mexico with the opportunity to be the focus of attention for nearshoring, positioning the country as an important destination for foreign investment for productions that were previously developed in Asia.

Industrial developers in the country have had the opportunity to be more competitive, allowing the market to be more robust and with greater capabilities when it comes to generating an offer of interest for multiple tenants who choose Mexico as their ideal location.

The advantages of proximity to the American territory and the benefits derived from it, such as savings in time and costs when delivering goods, have allowed taking advantage of a turbulent time whose final push requires clear public policies, both energy and security in the investments which would pave the way for obstacles for Mexico.