The relocation of production lines to Mexico ( nearshoring ) represents a great opportunity for economic growth for the country and one of the challenges is to meet the high demand that this phenomenon has brought in the industrial real estate sector, whose inventory could increase between 50% and 70% by the end of this six-year term.
This was projected by Jorge Ávalos Carpinteyro , president of the Mexican Association of Private Industrial Parks (AMPIP) , who highlighted that in this period approximately 150 million square meters (m2) of gross rentable area could be reached .
“We see a market at a very healthy equilibrium point (there is) a fairly healthy unemployment rate, giving developers and investors in the sector a lot of confidence to continue developing industrial space and meet the demand from national and international companies that are contributing to the economic development of Mexico,” said Ávalos Carpinteyro in his participation in the Norte Económico podcast of Grupo Financiero Banorte .
Currently, AMPIP groups 463 industrial parks in operation , which total 90 million m2 with a vacancy rate of 5%; there are also 94 projects in development .
In the third quarter of 2024, nearshoring accounted for 35% of the absorption of industrial spaces, equivalent to 1.7 million m2 , according to Jorge Ávalos.
“We have seen significant sustained growth in the association over the past three years, both in the demand for industrial space and in the development of parks,” he stressed.
Regarding investments made in industrial parks by AMPIP, he explained that this year alone they have disbursed more than five billion dollars (mdd)and noted that this could increase to six billion dollars by 2025.
“Today, what we are seeing the most are developments that are buying land reserves and putting to work the development of new ships to be able to meet the demand that is entering Mexico,” said Ávalos.
In his participation, he said that the automotive industry leads nearshoring , since it represents between 33% and 42% of new installations and expansions in Mexico, followed by the electronics sector with 39%, and machinery with 33 percent.
In this regard, he indicated that a new announcement was made in Nuevo León of a “huge plant” of Volvo Trucks , with a very large investment, “just like another one we are building in San Luis Potosí for batteries.”
Strategically located near the world’s largest market, the United States, Mexico continues to establish itself as a key point for companies seeking to invest and relocate their production lines in the country, so the demand for industrial spaces will continue.
In the third quarter of 2024 alone , Mexico captured an amount of 35,732 million dollars in Foreign Direct Investment , which represented more than 10% more than the same period of the previous year, according to the Ministry of Economy .
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