Industrial market growth in northern Mexico
By Perla Eunice
November 17, 2021
Northern Mexico is known for its steadily growing industrial markets.
Marcos Álvarez, Business Intelligence Director of Market Analysis, talked about
the growth of the different industrial areas.
MONTERREY
In the northeast, for example, Monterrey ranked first nationwide in
market absorption. During the third quarter of 2021, market absorption was
above 2.97 million square feet; with representative transactions from brokers
such as CBRE, Citius AG and Prodensa Select.
"In terms of availability, the most important participants were
Vynmsa and Grupo MPA among others," he said.
Representative transactions include the Uline expansion in Apodaca, with
320,000 SF; Mercado Libre in the same municipality, with 230,000 SF. Also, the
inventory transactions of Venanprin Tools in Escobedo, with 218,000 SF, and
Quantas Computer, with 202,000 SF.
REYNOSA
This market experienced a significant growth in absorbed space in
relation to the third quarter of 2020, with more than 400,000 square feet. One
of the most significant transactions during this period was Master Brands' BTS,
with a footprint of more than 280,000 SF; followed by Mirsa Manufacturing, with
68,000 SF; Emerson, with 54,000 SF expansion; and DVS, with 82,000 SF.
SALTILLO
This area reached 1.2 million square feet in closed transactions.
According to Marcos Álvarez, there was a significant growth compared to the
third quarter of 2020, particularly in the automotive, electrical and
electronics, and supply chain industries. Regarding stock, the most prominent
companies are Grupo MPA, Mencorsa, Davisa, Finsa, among others.
Representative leasing transactions include Truck - Phillip, with an
expansion of 182,000 SF in Arteaga; Nova Steel, with BTS of 163,000 SF in Ramos
Arizpe; HNI with 159,000 SF for inventory in Saltilo, among others.
MATAMOROS
"The Matamoros market did not have a good third quarter at all, a
trend that is also visible in contrast to other years. In terms of
availability, there are 312,000 square feet in speculative buildings."
NUEVO
LAREDO
Investment in Nuevo Laredo during the third quarter of the year was
72,000 square feet in closed operations. However, "even though these
investments are not large enough, they are very significant compared to
previous years," Marcos Alvarez stated. In terms of availability, there
are over 130,000 square feet in speculative buildings.
The representative transactions were inventory: Rheem, with 214,000 SF;
and Wisdom, with 82,000 SF.
TIJUANA
The Tijuana market had a great third quarter in the northwest region,
with the majority of the investment coming from the Florido submarket from
investments by companies such as Watkins Wellness (385,000 SF), ACE
Manufacturing (318,000 SF), Jonathan Louis (286,000 SF), and Boe Hefei (250,000
SF).
CHIHUAHUA
Chihuahua's North Central market had a positive change in comparison to
the same quarter of 2020, with over 15,000 SF in closed deals, particularly in
the electrical and electronics, food and beverage, as well as supply chain
industries.
Representative lease transactions were from Lutron, with a 79,000 SF
expansion; Factoria, with a 46,000 SF inventory-type transaction; and Victory
Packaging, with 28,000 SF.
CIUDAD JUÁREZ
Similar to Chihuahua, the Juarez market had a good quarter compared to
the same period in 2020. However, "there was a slowdown in investments,
with the majority of closures in the southeast submarket."
The most important developers in this quarter were IGS, Intermex, American Industries, Roca Desarrollos, among others. Finally, the Market Analysis director reported that the representative leasing transactions were carried out by Ergomotion (Tecma), with 114,000 SF for inventory; Legget & Platt, with 113,600 SF; Likom Mexico with 101,000 SF; and Saertex, with 90,000.
CONTACT:
Azucena Domingez