Infrastructure demand keeps growing in Monterrey, Nuevo Leon

The Covid-19 pandemic has disrupted global supply chain activities and has led to an increasing trend of nearshoring to Mexico. As a result, there has been a rise in demand for industrial buildings in northern Mexico. This trend is primarily driven by the proximity of Mexico to the US commercial market, providing logistical benefits for production activities in areas like Monterrey. This shift is expected to continue in the future as more companies seek to diversify their supply chain and reduce their reliance on other countries.

 The industrial market in Nuevo Leon, Mexico is witnessing continuous growth, with a record infrastructure demand for logistics and manufacturing activities. In addition to this, the construction of industrial buildings is also on the rise in the area.

Monterrey has established itself as the leading industrial real estate market in northern Mexico. According to Solili's report, the construction of 1.4 million square meters of industrial space in Monterrey during the second quarter of 2022 represents a demand that is 150% higher than that recorded in Mexico City.

As of the end of August, the demand for industrial real estate remained steady in northern Mexico. Reports indicate at least 50 new industrial buildings and warehouses are under construction in a market where car manufacturing and technology enterprises are the primary activities driving growth and contributing to establishing a technological cluster. 

Diversification is on the horizon

Pesqueria and Salinas Victoria municipalities have become attractive destinations for tech companies such as Bosch, Hisense, and Quantum Computer. However, the growth of industrial activities in the region can be traced back to the establishment of Kia's car manufacturing plant.

Tesla has chosen to establish its following factory in Nuevo Leon, Mexico, to leverage the benefits of the T-MEC and utilize Tier 1 suppliers within the country. ZF Group, a supplier for Tesla based in Germany, has already been operating in Monterrey to transport equipment to Tesla's facility in Houston, Texas.

Immobiliare magazine, which specializes in Real Estate, has informed that industrial constructions in the area includes the development of Build to Suit projects, and there are companies of different areas interested in taking their activities to the region, such as: 

•       Navistar: is an Asian company that looks for assembling electric trucks.

•       Lingong Machinery Group: looking for new activities to invest $140 million dollars in Nuevo Leon, where it produces elevators.

•       Hershey's: the American company has plans for growing its activities in Escobedo's municipality with US $90 million dollars.

•       Cuprum: a Mexican enterprise with activities for aluminum production, looking for investing $100 million dollars.

 At Frontier Industrial, we specialize in designing and delivering Class A industrial infrastructure for companies operating in areas with growing industrial potential in Mexico, especially in the context of nearshoring to Mexico. If you're interested in developing your project, please don't hesitate to contact us for more information.