28 June, 2023 | #DatozByDatoz
The journey from Monterrey International Airport to the city center involves crossing the municipality of Apodaca, and the view along the route on Miguel Alemán highway or avenue is predominantly industrial. Both sides of the highway are lined with large industrial buildings, which are owned by developers such as Prologis, Stiva, Finsa, Vynmsa, to name a few.
Apodaca submarket is the industrial heart of the second-largest industrial real estate market in the country, Monterrey. This market had a total inventory of 158.6 million square feet (ft2), of which 41% was located in Apodaca, with 64.3 million ft2, as of the end of May 2023. In other words, Apodaca submarket is the largest in the country and surpasses the total inventory of Guadalajara market, and is on track to reach the inventory of Querétaro market, according to Analytics 2.0 by Datoz.
This submarket is highly competitive due to its location, being close to Monterrey International Airport and having important highways and railway routes. It also benefits from developed infrastructure, including well-planned industrial parks equipped with essential services such as electricity, water, drainage, and telecommunications. The availability of skilled labor with a focus on technical and university education further enhances its competitiveness. The proximity to suppliers and customers is another advantage, facilitating efficient logistics and collaboration. Additionally, government support plays a crucial role in fostering a favorable business environment.
The aforementioned factors make Apodaca a highly coveted submarket for companies looking to establish their production or logistics processes in Monterrey market. In just the first five months of the year, Apodaca experienced a gross absorption of 2.7 million square feet (ft2), accounting for 62% of the total absorption recorded in Monterrey.
The sectors that demanded industrial spaces in Apodaca included industrial vehicles, industrial consumer goods, electronics, logistics, automotive, energy, and plastics. Notable companies that have established operations in the area include Schneider Electric, LG, DSV, Polaris, and Hillenbrand.
Despite being the largest submarket in the country, Apodaca has a remarkably low availability rate of just 2.62%, with 1.7 million square feet (ft2) available. With these absorption levels, the availability of industrial spaces in Apodaca would be insufficient to meet the demand.
From January to May, construction began on 2.5 million square feet (ft2) of speculative industrial buildings (65%), build-to-suit for lease (31%), and build-to-suit for sale (4%) in Apodaca to meet the aforementioned demand. Developers such as Avante, Vynmsa, Stiva, American Industries, Corporate Properties of the Americas (CPA), Finsa, Roca Desarrollos, Garza Ponce, and Vesta were among those initiating new constructions during this period.
Overall, Apodaca is home to over 1,400 companies, many of which are world-class, and it employs 118,000 industrial workers, according to municipal data. These numbers reflect the significance of Apodaca in the industrial sector and indicate that it will continue to grow in importance.
To learn more details about this industrial real estate market, visit Datoz’s Analytics 2.0 platform, which provides comprehensive analysis of the industrial real estate market.