Monterrey’s booming industrial market

NUEVO LEON - Nuevo León's industrial real estate market continues to be very dynamic. As of the first quarter of 2024, inventory has increased by 525,481 square meters and there are 2.1 million square meters under construction. However, it is the third most expensive city, after Tijuana and Mexico City.

"Because the inflation issue is not being controlled, prices remain high. There are increases because the cost of materials is not decreasing, the same happens with interest rates, they still have not improved significantly," said Sergio Resendez, general director of Colliers Monterrey, to El Economista.

He explained that if Monterrey's prices are compared with the rest of the north of the country, the first place is occupied by Tijuana due to its geographical limitations and the number of parks it has; Mexico City, because there is practically no more land and it is difficult to develop due to permits and electricity; and Monterrey follows with high prices, but a greater amount of supply.

Despite the fact that there is very strong competition, and Monterrey continues to be an expensive city, it has other attributes: skilled labor, major companies established in the region, a cluster network that remains strong, logistics and other advantages that make customers decide to stay even with the high price.

"At the close of the first quarter, the weighted average exit price for rents was US$6.89 per square meter per month," according to Colliers Monterrey's Industrial Market Report.

At the end of the first quarter, 1,729 class A and B buildings were monitored in Monterrey, totaling 20.7 million square meters, distributed in 9 submarkets in the metropolitan area.

Class A buildings represent 55% of the total supply, while Class B buildings account for 45%.

An increase of 525,481 square meters was recorded, higher than the 191,760 square meters reported in the first quarter of 2023.

At the close of the first quarter, 1,729 Class A and B buildings were monitored in Monterrey, totaling 20.7 million square meters, distributed in 9 submarkets of the metropolitan area.

Class A buildings represent 55% of the total supply, while Class B buildings represent 45%.

An increase of 525,481 square meters was recorded, higher than the 191,760 square meters reported in the first quarter of 2023.