Industrial growth continues in the NL

Industrial growth continues in the NL

An industrial absorption of 471,000 square meters was registered at the end of 2018 within the metropolitan area of Monterrey, said XXX from CBRE Mexico.

In addition, XXX said that the industrial market exceeded the 9.7 million square meters with 345,000 square meters of new offer on the year and added that the new demand or net absorption represented 50 % of what was registered on 2017.

“This result mainly from the commercialization of hired Build-To-Suit spaces and that they will be incorporated on the trimesters following the inventory,” xxxx explained.

XXXX noted that the tenants’ activity on seeking for new spaces has begun reactivating in the city.

By the end of 2018, industrial buildings in construction add a total of 367,215 square meters, from which, 55.7 % belongs to Build-To-Suit constructions and 44.3 % to speculative developments.  Submarkets from Cienega de Flores, Apodaca and Escobedo add 75.2 % if the space in construction.

Regarding the new offer, in 2018 were registered more than 378,000 square meters of Class A space, which when incorporated to the industrial inventory 9.8 million square meters were reached.

“By the end of 2019 a rebound was registered on the search for spaces from companies in Monterrey, this resulted from the ending of the USMCA negotiations, since this provides certainty to manufacturing companies in the country,” said XXXX.

It is expected that the construction activity in 2019 and the perspectives of new investment through planned spaces continue to increase.

DEMAND

According to CBRE Mexico, submarkets of highest demand were Apodaca and Escobedo, that together accounted 53.6 of the marketed space.

Among the main operations standout the ones of the companies Ceva, Galo Shipping, Meritor, Iacna, Conmet and CG.

For 2019 is expected the arrival of more companies dedicated to e-commerce and logistic distribution, and that hired spaces are increasingly larger in extension.

Industries recorded the highest activity in the metropolitan area of Monterrey were of the manufacturing sector with 28.1 %; logistics, with 25.3 % and the automotive, with 14.4 %, among others.

Meanwhile, American companies mainly rule in the search for new spaces, due to in Monterrey traditionally exports strongly to the United States; however, Korean companies continue to bet strong on this market.

GENERATING NEW JOBS

Regarding the foreign investment arriving to Nuevo Leon in 2018, were announced in total 57 new projects, from which 14 were already settled company’s expansions and 43 of such announcements were from new companies in the State.

The amount of investments that represented such projects according to official figures from the Federal Ministry of Economy by the end of the third trimester from 2018 was of 3,214 million dollars, making Nuevo Leon the State that more FDI captured in nationwide with 13 % of the total entering the country.

According to statistics from the Ministry of Economy and Labor in Nuevo Leon (SEDET, by its Spanish initials) the number of committed jobs that generated the 57 announcements of foreign investment in 2018 exceeds the 10,700 new jobs, highlighting the case of companies such as LS Automotive Technologies, which will generate more than 1,000 new positions and Conduet, which will offer more than 400 jobs on its new services center in the entity.

It is estimated that there are more than 3,500 companies of foreign capital in Nuevo Leon, from which, most of them are of American origin, followed by companies from countries such as Korea, Japan, Germany, Spain, Argentina and the Netherlands.