Opportunity Knocks in Ciudad Juarez

Q: How have Axial Grupo’s 40 years of experience shaped its approach to meeting the evolving needs of Ciudad Juarez's real estate market?

A: The company has successfully navigated numerous economic challenges and crises. We built strong relationships with clients, brokers, contractors, authorities, and lawmakers. It took considerable time and effort, but we are now in a position of continuous growth, with new developments each year.

In 2023, we initiated a new industrial park in the municipality of Ascension, located less than 5km west of Ciudad Juarez. The plan for this project features LEED-certified facilities, a first for our company. We are collaborating with a specialized group to achieve this certification. The landscape of renewable energy has evolved significantly, and we are optimistic that it will become increasingly accessible with the next government administration.

Q: What are the main benefits Axial Grupo obtained by joining the Mexican Association of Private Industrial Parks (AMPIP)?

A: We joined in March, and last month we attended our first conference in Aguascalientes, which provided incredible networking opportunities. We met with a group we are now in discussions with regarding a solar plant for our new park. We also connected with construction groups, FIBRAS, and brokers. The experience was amazing and will enable our future growth.

With more industry contacts, we can collaborate on new construction methods and enhance sustainability in our practices. Meeting suppliers of renewable energy sources, such as solar panels, was particularly beneficial and will be advantageous for the future of the company as we continue to invest in Ciudad Juarez and beyond.

Q: Where would you like to expand your operations aside from Ciudad Juarez?

A: We aim to increase our presence in the north of Mexico, targeting locations ideal for nearshoring due to their proximity to the largest consumer market in the world, the United States. We are currently in discussions about a joint venture in a northern state with a group planning a large industrial park.

Q: How do Axial Grupo’s assets help companies to comply with sustainability standards?

A: The challenge lies in the regulations that prohibit private energy generation without extensive due diligence, research, and permits. These regulations prohibit us from building a solar farm independently. To address this, we are establishing a partnership with the energy group we met at the AMPIP conference. This collaboration will help us secure sustainable energy, such as solar panels, for all our future facilities and parks.

Q: What features make Ciudad Juarez an ideal investment destination for nearshoring companies?

A: Ciudad Juarez is an ideal location for nearshoring due to its proximity to the United States and El Paso, Texas. The population of 1.6 million is continuously growing, providing a strong labor force. The presence of higher-education institutions such as UTEP and Universidad Autónoma de Ciudad Juárez further supports this growth. The city also has the infrastructure for industrial development, including roads, highways, and railroads. However, the infrastructure in terms of energy and water needs to improve to support the city’s rapid industrial and population growth.

Q: How has nearshoring impacted the types of industries that Axial Grupo serves?

A: About 80% of our clients are manufacturing companies, while the remaining 20% are logistics companies. In 2022, we completed a 409,771 ft2 facility for Werner, which manufactures tool boxes and ladders. It required a large space for its many employees, and determined that Ciudad Juarez was the ideal location for its operations.

Q: What are the standout features of your industrial properties that set them apart from the competition?

A: Our parks are strategically located near the main arteries of Ciudad Juarez, with roads leading to the four international entry ports: Puente Cordova de las Americas, Tornillo, Santa Teresa, and Zaragoza. This connectivity to the United States is crucial, as most of our clients export. Only about 25% of our clients are Mexican companies that produce and distribute domestically.

Q: What do you envision as the legacy of the Axial Grupo in Ciudad Juarez?

A: Our goal is to become the largest developer in Ciudad Juarez, which is why we continue to acquire land just outside the city, slightly to the south and west, where the population is growing. Our mission includes fostering economic development in Ciudad Juarez by creating jobs and stimulating economic activity. Our legacy will be centered on fostering sustainable economic growth in Ciudad Juarez.

Axial Grupo is a Mexican real estate company based in Juarez, Chihuahua. With 40 years in the sector, its portfolio comprises industrial, retail, and office spaces.