Manufacturing sector drives real estate market growth

The industrial market has taken up close to 34 million square feet during the first half of 2021. Marcos Álvarez, Business Intelligence Director of Market Analysis, reported that the fastest growing industrial sectors, compared to last year, have been automotive (29.8), electrical-electronics (18.0%), and consumer products (12.9).

The sectors with the highest share from the first to the third quarter of 2020 were supply chain (19.7%), automotive (15.4), and e-commerce (11.9%).

REPRESENTATIVE DEALS

Out of the nearly 34 million square feet of total absorption during the year, 66.5% corresponds to manufacturing end-use, and 33.5% to logistics.

Mexico City was one of the markets with the most representative transactions: companies such as Mercado Libre, Logan, Innova, Marklog and Koandi moved in.

On the other hand, Querétaro had a greater share of manufacturing companies. Companies such as Aermotor (aerospace), Keats de México (metal-mechanics), and Kloeckner Metals (steel) were set up in the state.

Companies such as Logística Flexible, Procolor, Tecnoled and Betterware have also set up operations in Jalisco.

HIGHLIGHTS

The director of Market Analysis pointed out that Mexico boasts one of the most important manufacturing corridors in the automotive industry; therefore, there are many opportunities for expansions or new industries in the sector.

As for the electrical-electronic and consumer products sectors, he mentioned that their growth is driven by the trade relationship with the United States.

"The growth of these sectors is an effect of the proximity to the United States, for markets with the largest investment were settled in the border states. We must keep in mind that the United States has been the country with the largest investment to date".

PROSPECTS

Marcos Álvarez pointed out that Mexico offers a great diversity of industries, which increases its potential for investment of any type and from any country.

"The location, labor force and quality of life, among many others, are important factors that encourage investors to turn to the country to generate new business".

Finally, he mentioned that the automotive and electric-electronic sectors will continue to grow.

"Undoubtedly, the automotive and electric & electronics sectors will remain the fastest in terms of growth; supply chain and medical are also likely to see some new investment. This is a result of the pandemic era that has increased new opportunities, both in terms of reaching the end consumer and satisfying primary healthcare needs."