Nearshoring drove the construction of more than 350 industrial projects

MEXICO - In 2023, the year was marked by the relocation of companies (nearshoring) at a global level. In Mexico, this phenomenon was a trigger for the industrial real estate sector, which was reflected in construction indicators.

According to Solili, a real estate data platform, throughout 2023, the development of more than 350 industrial projects began in the various Mexican markets under pressure from the demand of companies wishing to relocate their production centers to the country, in order to take advantage of the proximity to the United States.

Thus, by the end of December, a total of 5.6 million square meters of industrial buildings were reported under construction nationwide.

Despite the fact that construction did not stop throughout the year to satisfy the reconfiguration of supply chains, an analysis conducted by Banco Base stresses that nearshoring is "a golden opportunity that is not being fully exploited". It is estimated that Mexico receives only between 10% and 20% of foreign investment flows due to company relocation.

"These investment flows are highly focused on certain states and manufacturing subsectors. In fact, there are entities where nearshoring continues to be a myth, as they have not received new investments," reads the bank's report.

It is worth mentioning that in 2023, Monterrey stood out for the announcement of an investment of more than US$5 billion by Tesla; however, the city was already emerging as one of the winners of nearshoring prior to this event, due to its geographic location, its infrastructure and its manufacturing vocation developed over the years.

With more than a hundred projects, the city of Monterrey exceeded 1.5 million square meters of new industrial buildings in construction last year, according to Solili. The second quarter was the most dynamic in the region, since the execution of 31 industrial buildings began.