As is known, the northern region of Mexico has been the most impacted by nearshoring. Similar to Monterrey, Tijuana, and Ciudad Juárez, in the industrial real estate markets of Reynosa, Chihuahua, and Saltillo, the nearshoring effect is beginning to be reflected in the variation of their real estate indicators, in this case, the asking price for industrial spaces for lease at the end of 3Q 2023.
The weighted average price of industrial spaces in Reynosa, Chihuahua, and Saltillo experienced double-digit increases compared to the same period in 2022. In monetary terms, this increase was over $0.10 USD per square feet per month, according to Datoz’s Analytics 2.0.
To be more precise, in Reynosa, the asking price in 3Q 2023 was $0.57 USD per square feet per month, compared to $0.47 USD per square meter per month in 3Q 2022, representing a 21% increase. The asking price in Chihuahua reached $0.56 USD per square meter per month, while in the previous year, it was $0.45 USD per square meter per month, marking a 24% increase. Meanwhile, Saltillo ended the third quarter of 2023 with an asking price of $0.51 USD per square meter per month, compared to $0.43 USD per square meter per month in 3Q 2022, indicating a 19% growth. It’s worth noting that these are the highest prices these markets have recorded.
There are various reasons that have driven this level of growth in leasing prices. In general terms, there is inflation in the prices of construction materials, an increase in interest rates, rises in land costs, among other factors.
However, dynamics specific to these markets have also played a role, such as the increase in demand. During 2021 and 2022, they recorded their historical highs in gross absorption, which reduced the availability of spaces in these markets and, as a consequence, increased construction starts. In other words, the demand for spaces led to the construction of new spaces, which increased their asking price as they were Class A, state-of-the-art facilities, driven by market demand and general inflation.
