August 1, 2023 | #DatozByDatoz
The interest of national and international companies in locating their manufacturing and logistics processes close to the United States, known as nearshoring, remains strong. As a result, the main industrial real estate markets near Mexico’s borders have maintained a high demand for industrial spaces in 2023.
During the second quarter of 2023, Monterrey, Tijuana, and Ciudad Juárez recorded annual increases of 7%, 3%, and 19%, respectively, in the gross absorption of industrial spaces. This growth contrasts with the rest of the markets in the northern, central, and bajío regions of Mexico, where there were reductions in absorption rates. However, Guanajuato, Puebla, and La Laguna were exceptions to this trend, as they experienced increases in the absorption of industrial spaces during the same period.
Silvia Gómez, Senior Market Analyst at Datoz, mentioned in a media meeting that Monterrey, Tijuana, and Ciudad Juárez “have been the markets that have remained active; they have been like this since last year. These markets have shown the highest demand for industrial spaces so far this year, as the rest of the markets and regions have experienced declines.”
She emphasized that the most attractive markets for nearshoring are located near the border, which is why there has been significant absorption in these markets. Furthermore, the effects of nearshoring are expected to be long-term, so it could also influence the markets that have experienced lower demand throughout the year.
During the period from January to June 2023, Monterrey achieved a gross absorption of 5.4 million square foot (ft2) of gross leasable area (GLA), compared to 5.06 million ft2 during the same period in 2022, representing a 7% increase. Monterrey had the second-highest absorption in the country, just behind Mexico City. The industries that drove the demand in this market were industrial consumer goods and services, electronics, automotive, and industrial vehicles.
On the other hand, Tijuana secured the third position in gross absorption with 3.16 ft2 of GLA, representing a 3% increase compared to the same period from January to June 2022, during which it recorded 3.07 ft2. The electronics sector remains at the forefront of the demand for industrial spaces in Tijuana, followed by industrial consumer goods and services, automotive, and the medical industry.
From January to June, Ciudad Juárez recorded a gross absorption of 2.9 ft2 of GLA, representing a 19% increase compared to the same period in the previous year when it reached 2.4 ft2. The industries that accounted for the highest absorbed space were warehousing and logistics, followed by the electronics sector.