As nearshoring opportunities are becoming more tangible, real estate developers may not be able to cover the increasing demand for space in industrial parks in Mexico since the most important industrial parks have nearly no capacity available to host new companies.
The Mexico-based real estate fund Meor said that owing to the nearshoring phenomenon, Mexican real estate companies are facing a new challenge: the lack of available space, as most industrial parks in northern Mexico are not able to keep up with the increasing demand. Under these circumstances, the company considers it necessary to develop more spaces.
Nuevo Leon is the only state that is not suffering from the lack of space. The company considers that the state is accessible in terms of costs and space, as well as regarding access to services and road infrastructure. “There is a lack of space to adapt to this transformation to meet the demand created by nearshoring. In Nuevo Leon, the demand does not exceed the supply as in other markets. Therefore, in Tijuana and Ciudad Juarez, we have seen brutal price increases, but in Monterrey, costs have increased according to inflation, and the city remains accessible,” said Jonathan Pomerantz, Sales and Investments Director, Meor.
In an interview with El Economista, Pomerantz said that in the case of Nuevo Leon, the local government’s support for the private sector is a key factor that helped boost demand for industrial spaces and consequently stabilized the market. He highlighted that over 30 companies are looking for areas to construct industrial parks in Nuevo Leon.
According to Pomerantz, besides the construction of more industrial parks, Mexico needs to address the demand for energy, water and a specialized workforce. Additionally, according to José de Corcuera, Head of Industrial Business Development, Project and Development Services, Cushman & Wakefield, energy sourcing is a key feature developers must consider when deciding the place to construct industrial parks. In an interview with MBN, de Corcuera said that the lack of energy feasibility has been a constraint for new companies looking to move to Mexico.
Newmark forecasted that by the end of 2022, the industrial markets near the US border will close with historic absorption rates and leased surfaces of more than 18,000m² and 1 percent of available space in their industrial parks. “We have experienced a large number of companies from different sectors that, to reduce partial or total closures, are landing in [Mexican] cities and states that stand out for their qualified workforce, world-class infrastructure and services,” Said Abraham Fernández, Director for the Industrial Sector, Newmark.