In the first nine months of 2023, Mexico City, Monterrey, and Aguascalientes recorded significant foreign direct investment (FDI). While Mexico City and Monterrey (Nuevo León) led FDI attraction at the national level, Aguascalientes experienced an increase of nearly 150% compared to the previous year.
Nearshoring was the main driver for the significant FDI attraction in these states. In the case of Mexico City, FDI due to nearshoring reached $2,695 million dollars, a 27% increase compared to 2022; in Aguascalientes, nearshoring FDI amounted to $1,350 million dollars, 310% higher than in 2022; and in Nuevo León, nearshoring FDI totaled $545 million dollars, 265% higher than in 2022, according to the Instituto Mexicano para la Competitvidad (IMCO).
These figures influenced the demand for industrial spaces in these markets since, although the country’s industrial real estate market experienced a decline in space demand, Monterrey, Mexico City, and Aguascalientes managed to maintain their levels of gross absorption (transactions in sales and lease), and even surpassed the records set in 2022.
Monterrey
During 2023, Monterrey was the industrial real estate market with the highest gross absorption, reaching 15.9 million square feet (ft2). Despite the increase being only 2%, the absorption level once again broke historical records in Monterrey due to the nearshoring boom.
In March 2023, Tesla announced its investment for its Gigafactory in Santa Catarina, and this was joined by various automotive suppliers such as Tuopu Group, Seoyon, among others.
Mexico City
From January to December 2023, Ciudad de México had a gross absorption of 13.2 million ft2, representing a mere 1% increase compared to 2022. Sectors that continue to absorb large amounts of industrial space in the region are logistics, e-commerce, and consumer goods and services, specifically by companies like Mercado Libre, Shein, among others.
This year, the activity of Mercado Libre stands out as it added nearly 2.5 million ft2 in various buildings in CTT corridor (Cuautitlán-Tultitlán-Tepotzotlán).
Aguascalientes
In 2023, Aguascalientes saw a staggering 863% annual increase in gross absorption, totaling 1.2 million ft, reaching a historical record for this market. Of these, 70% was occupied by the automotive sector, which has been the main driver of nearshoring in Mexico.
Companies such as MATA Automotriz, Tenneco, NBHX, among others, propelled this high level of absorption. Given that Aguascalientes is an emerging market, this demand for space is extremely positive, and it is expected that this momentum will continue in 2024.
