The expansion of industrial parks in Mexico will have five years of “tremendous activity” due to the effect of the relocation of supply chains or ‘nearshoring‘, estimated Sergio Argüelles, outgoing president of the Mexican Association of Industrial Parks (AMPIP).
Argüelles said that proof of this is the issuance of the fifth bond of the industrial real estate company Finsa, which he heads, for up to 600 million dollars to integrate a portfolio of industrial parks diversified in 12 of the 32 states of Mexico and seven key industrial corridors.
High demand for industrial space
Among them are those near the border with the United States, such as Monterrey, in Nuevo León; Saltillo, in Coahuila; Ciudad Juárez, Chihuahua; the Tijuana-Mexicali corridor, in Baja California; the Bajío, from Aguascalientes to Querétaro; as well as Mexico City, and the surroundings of the center of the country.
The director of Finsa, one of the main builders of industrial buildings in Mexico, explained that up to December 29 they had captured 340 million dollars, and in less than 60 days they expect to complete the goal of 600 million dollars, with a term of 10 years.
Investment in new and existing parks
Argüelles detailed that this is due to the “extraordinary activity that has been given by the ‘nearshoring’ and obviously the good reception that Mexican manufacturing has had”.
He said that the first five years will serve as a period of investment, in which he estimated up to six new industrial parks and the expansion of others to integrate a portfolio of between 1.2 and 1.4 million square meters of industrial buildings.
In addition, the outgoing leader of the AMPIP asserted that the demand for industrial space in Mexico is high.
Advantages of the T-MEC
“Without a doubt, there is a lot of demand for manufacturing in Mexico. Mexico is a proven market, it is a market that has capacity for extraordinary productivity, quality that is very well proven internationally and obviously we continue with a lot of labor,” he said.
Argüelles highlighted the advantages of the Treaty between Mexico, the United States and Canada (T-MEC) in the region.
“And we continue to receive investment, not only from the United States but also from Asians and Europeans,” he added.
Challenges to overcome
On the other hand, the director and president of Finsa recognized that there are still challenges in the country in terms of energy, water, infrastructure and security, but he clarified that they have identified land with “good location” and access to the main services demanded by industries.
Finsa represents 13.6% of the industrial real estate inventory in the country, where it has 23 industrial parks, 3.7 million square meters under administration and lease, with an occupancy of 99% of various industries such as manufacturing, automotive, aerospace, logistics and e-commerce.
FAQ
Nearshoring is the relocation of manufacturing facilities to closer locations. This trend is driving a surge in demand for industrial space in Mexico, leading to five years of predicted growth for industrial parks.
Finsa plans to invest up to $600 million to build a portfolio of industrial parks across 12 Mexican states, with a focus on key industrial corridors.
The new parks will be located near the US border (Monterrey, Saltillo, Ciudad Juarez, Tijuana-Mexicali), in the Bajío region (Aguascalientes to Querétaro), and around Mexico City.
Mexico offers several advantages, including proximity to the US, a proven manufacturing track record, skilled labor, and the benefits of the T-MEC trade agreement.
The AMPIP estimates that companies relocating to Mexico will need 2 million square meters of industrial land, potentially requiring 30 new industrial parks.
