Mexican Industrial Real Estate Expects Record Demand in 2023
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Mexican Industrial Real Estate Expects Record Demand in 2023

Photo by:   Image by igorovsyannikov from Pixabay
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Emilio Aristegui By Emilio Aristegui | Junior Journalist and Industry Analyst - Thu, 01/19/2023 - 11:13

Demand for industrial real-estate is increasing to unprecedented levels, reports real estate information platform Datoz via its Panorama of the Industrial Market in Mexico 4Q22. 

The Panorama of the Industrial Market in Mexico points that total industrial real estate inventory accounts for 94.49 million m², most of it concentrated in Mexico City and Monterrey, with 16% and 15% percent, respectively. “We have seen an increase in the demand for industrial spaces, specifically in the last two years,” said Sergio Mireles, Partner and Founder, Datoz, to T21. The increase in demand follows the country’s economic growth, the entry of new companies and the need to expand operations. 

In 4Q22, construction reached record levels amounting to 5.63 million m². Available real estate spaces amount to 4.04 million m², most of them also located in Mexico City and Monterrey, according to the report.

“This is because the developers stopped being cautious due to the issue of the pandemic and others, now the construction is proceeding a little more. The future remains bright for 2023 and will probably continue in line with the performance of the last few years, 2021 and 2022 are historic,” said Pablo Quezada, Product Manager, Datoz. 

Growth in the real-estate industrial sector can be attributed to nearshoring, among many reasons. Credit Suisse’s third edition of the “Mexico Nearshoring Tracker” indicates that Mexico could take advantage of upcoming opportunities from Asia. Ruben Iman, CEO, Onest Logistics, said that Mexico is the best-positioned destination in Latin America for nearshoring and has already attracted several manufacturing activities to the country. In November 2022, Credit Suisse found that 12 new export-oriented manufacturing facilities announced a total of US$1.2 billion in investment commitments in Mexico, as reported by MBN. 

Datoz also delineated that rental prices have increased, which can be attributed to inflation, a shortage of speculative spaces in the areas with the highest demand and a fierce competition among companies that aim to relocate to these areas.

Photo by:   Image by igorovsyannikov from Pixabay

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