Industrial Real Estate Demand In Mexico On The Rise

Data from the real estate firm Solili indicates that there is a rising demand for industrial real estate throughout Mexico, with Monterrey and Mexico City experiencing the highest demand, Mexico News Daily reported.

Gross industrial demand in Mexico from January to November was 6.6 million square meters, 13% more than it was during the same time in 2021, according to real estate agency Solili, said reports.

The demand is highest in Monterrey and Mexico City, with the former estimating a need for more than 1.6 million square meters and Mexico City needing 1.4 million square meters. So, 25% of the country's demand comes from Monterrey, while 22% of the total comes from Mexico City.

According to Solili’s report, just in November Mexico City registered the construction of 150,000 square meters of new industrial space, while 132,000 square meters of space were built in Monterrey.

A rise in industrial demand has also been recorded in the Bajo region, which encompasses the states of Guanajuato, Querétaro, San Luis Potosí, and Aguascalientes. The region reported a gross demand of more than 1.3 million square meters from January to November, which is an increase of 50% over the same time in 2021.

The development of different businesses as well as particular significant projects including the construction of industrial-scale data centers, furniture production, and the automotive industry are among the drivers that have sparked this boom.

Another quarter of the demand that was recorded from January to November is accounted for by additional northern markets like Saltillo, Ciudad Juárez, Reynosa, and Tijuana.

These figures clearly show a 13% rise in demand for industrial space nationwide over the same period in 2021.

“2022 has been a crucial year for the Mexican industrial market, which has managed to strengthen itself amid the increase in world inflation and the restructure of supply chains,” Solili said.

According to the company's most recent report on foreign direct investment, which was issued in November, Mexico attracted US $3.1 billion in funding, a sum that already exceeds what was recorded for the entire year 2021.