Will Mexico need new industrial parks?
It is estimated that due to the wave of nearshoring, more space is demanded.
The foreign manufacturing industry nowadays has a special interest in locating its operations in Mexico's northern fringe. Thanks to the geographic location and the young and competitive labor force in this area of the country, states bordering the United States such as Chihuahua, Coahuila, Baja California and Nuevo Leon are some of the beneficiaries of the Nearshoring phenomenon.
What seemed to be a passing phenomenon, as a result of the pandemic became stronger than expected, and it is expected that by 2023 there will be so much demand for available industrial space, that developers such as American Industries need to increase the development of new industrial parks, shortening times and costs for companies that begin to develop strategies to relocate operations to Mexico, so that the change can be immediate without affecting the manufacturing of their products.
The demand for industrial parks and warehouses in Mexico has been derived from factors such as the attraction of Foreign Direct Investment (FDI), e-commerce and the relocation of production chains as a result of nearshoring, therefore, the industrial real estate sector is positioned as the most booming on a national scale in 2023.
By the end of 2022, American Industries will manage an industrial portfolio of more than 140 constructed and leased buildings, equivalent to a total area of 20M square feet. In addition, it has a presence in the country's main industrial cities with more than 15 industrial parks, where our clients - mainly in the automotive, electro-mobility, home appliance and medical device sectors - are looking for suitable industrial space that will allow them to have quality production areas, so that they can focus entirely on achieving a successful operation in Mexico.
In particular, we plan to continue with our five-year investment plan, so this 2023 we will focus on meeting the demand for more industrial space, which is currently at 99% occupancy levels, as well as exploring new regions in Mexico to install more industrial parks, and reinforcing energy and sustainable water consumption issues. Likewise, we seek to continue building industrial buildings with green certifications such as LEED O+M certification, which we are currently enabling the certification process for seven industrial buildings in Mexico, representing a total of 1,096,633 square feet, with certifications expected to obtain Silver and Gold, to go hand in hand with the international trend in ESG criteria.