Mexico: Nearshoring, Foreign Investment Create Industrial Opportunities

 

By: C. Kat Grimsley, Ph.D. and Héctor Salazar Sánchez, Ph.D.

 

Industrial real estate emerged as a clear winner during and after the COVID-19 pandemic thanks to increased demand for e-commerce, a new emphasis on nearshoring and greater investment in logistics solutions.

 

In particular, Mexico, with its proximity to the U.S. consumer market, has seen substantial growth in industrial development in recent years. Although notably smaller than the neighboring U.S. market, which has 14.5 billion square feet of industrial property, the Mexican industrial market encompasses 908.5 million square feet across all product types.

 

In 2022, 65% of Mexico’s industrial space construction was concentrated in just four cities — Mexico City (20%), Monterrey (19%), Ciudad Juarez (16%) and Tijuana (10%), the last three of which are states that border the U.S. and have greatly benefited from nearshoring.

 

https://www.naiop.org/research-and-publications/magazine/2023/Spring-2023/business-trends/industrial-spotlight-mexico-nearshoring-foreign-investment-create-opportunities/