Industrial Infrastructure Key for Mexico’s Advanced Manufacturing

The nearshoring trend could position Mexico as a key destination for global manufacturing; however, attracting traditional manufacturing is not as much of a priority as attracting advanced manufacturing. This demand, driven by automation, technology, and complex supply chains, requires a different class of industrial infrastructure and, critically, stable investment conditions. 

"We are in a delicate geopolitical situation, facing tariff wars between the United States and its partners and non-partners, alongside the conflicts in Ukraine and Israel. This, compounded by the USMCA review in July 2026 and the US midterm elections, positions trade in an interesting yet challenging situation,” said Salomon Noble, CEO, Intermex, during the Mexico Business Summit 2025 in Monterrey, Nuevo Leon. 

To meet this new standard, tenants in advanced manufacturing, including the automotive, medical devices, and electronics sectors, are seeking facilities with higher technical specifications. "If we wait for companies to set up silicon chip manufacturing plants, we are still very far off," Noble noted, "Realistically, Mexico can and should focus on attracting Assembly, Testing, Packaging (ATP), which requires specific infrastructure.” Consequently, investment is shifting to build the infrastructure they need for larger parks and technologically advanced, sustainable, and integrated ecosystems. 

Key requirements now include robust power capacity to support automation, data redundancy for "smart" factories, and facilities that meet high ESG standards, which is reshaping investment strategies. The focus is moving away from purely speculative, basic warehouses and toward complex Build-to-Suit (BTS) projects. "Pre-leasing rates are at 70% has caused a shift from speculative construction to BTS projects," noted Javier Lomelin, Managing Director, Colliers Mexico.

Some other developers opt for a spec-to-suit approach, which combines the speed of a turnkey project with the customization of a BTS. Developers start construction on a speculative building with a general design and then make specific adjustments midway through the process to meet a tenant's needs. These customizations often include technical specifications like higher-than-standard roof heights, reinforced foundations for heavy machinery, and flexible layouts easily adapted for different industries.

Financing Industrial Assets: ESG Matters

Building this new class of infrastructure is capital-intensive, so developers and Mexican Real Estate Investment Trusts (FIBRAs) are utilizing different models to fund these projects sustainably. Experts stress that capital for Mexico's industrial infrastructure is available, but investors universally demand clear and reliable conditions. Noble says this includes certainty, security, and equity for private capital, warning that not having these undermines investment. He noted that the continued participation of FIBRAs, which are largely funded by AFOREs, is fundamental, and these funds require confidence to keep committing capital. 

Furthermore, given the complexity and scale of the required infrastructure works to sustain industrial investment, financing structures like Public-Private Partnerships (PPPs), similar to the existing FIBRA E structure, must be utilized. "The key element is certainty; you cannot invest money in a project if the rules change while you are in the middle of executing it," stressed Noble.

There is a growing convergence of finance and sustainability. Instruments like green bonds and sustainability-linked credit lines are being used more frequently. This is not just a general trend; according to the Mexican Association of FIBRAs (AMEFIBRA), 39% of all debt issued by its members between 2020 and 2025 was linked to green bonds or sustainable performance indicators.

Investors are increasingly linking capital to developers who build energy-efficient, water-saving, and low-emission facilities. These financial instruments often directly tie a loan's terms, such as its interest rate, to the developer achieving specific KPIs. Tracking these KPIs is yielding tangible results: AMEFIBRA members have already certified over 8 million m² with international environmental standards, increased renewable energy use in their portfolios from 16% to 21%, and are advancing toward a Net Zero goal. This is becoming both an environmental and a financial imperative, as multiple leaders have noted that companies with strong ESG practices tend to be more profitable and sustainable long-term.

Financing models are also evolving to include more partnerships and de-risking structures, such as joint ventures and long-term lease pre-commitments, to ensure projects are viable and aligned with long-term market demand.

Parks as Integrated Ecosystems

To attract and retain advanced manufacturing, operators are transforming their properties from simple collections of buildings into integrated service ecosystems. "Advanced manufacturing consumes 60% of Mexico's energy, and demand is expected to increase by 40% by 2037. However, this statistic does not even account for the necessary demand from data centers supporting AI; we need to co-invest,” Lomelin said.

To address these risks, industrial users are becoming more active energy managers, exploring solutions that provide autonomy and resilience. This includes adopting risk mitigation strategies like backup generation and energy storage, and exploring behind-the-meter or isolated supply models. In response, power producers are designing hybrid models that combine renewable generation with storage, moving beyond traditional, fixed-price contracts toward more modular and flexible Power Purchase Agreements (PPAs).

Beyond this power component, other value-adds are becoming standard. Lomelin emphasizes that this requires the optimization of processes, permits, and licenses through the reduction of time and costs for project development. “We can achieve this through industry associations and interaction with authorities,” he said. These value-adds include private water treatment plants to address scarcity, 24/7 security with advanced monitoring, and high-capacity fiber optic networks to support data-heavy operations.