Nearshoring boosts development in small cities, says Érick Brunet

The executive of the real estate firm Newmark said that there is a growth and absorption of industrial spaces in Ciudad Juárez, Saltillo, Nava, Monclova and La Laguna.

Nearshoring has not only brought greater demand for industrial spaces, but also has boosted the development of secondary markets (other cities that were not listed) to serve industries such as automotive, food, aerospace and pharmaceutical, which traditionally were regionalized and now begin to explore other cities, said Érick Brunet, director of transactions at Newmark.

The executive detailed that there is a growth and absorption of industrial spaces in cities such as Ciudad Juárez, Saltillo, Nava, Monclova and in the area of La Laguna.

He stressed that the demand for the relocation of companies is permeating the entire national territory, not only the north or northeast of the country.

He mentioned that in the case of Monterrey and its Metropolitan Area they have a vacancy of 0.4 percent of availability. Other cities with low vacancy stand out Tijuana, which has 0.6 percent of availability; Ciudad Juárez, with 1.4 percent; Reynosa, with 1.8 percent; which has given way to historical absorptions in “secondary” markets, such as Mexicali and San Luis Río Colorado for Tijuana; the city of Chihuahua for Juárez; Saltillo and it is expected that Monclova, Nava and the big surprise, La Laguna will start.

Also in the Bajío-Occidente region, the greatest absorption is taking place in Guadalajara, Guanajuato and Querétaro, with almost 1 million square meters of gross absorption in the third quarter of 2023, which has made a decrease in availability.

In view of this, San Luis Potosí and Aguascalientes are magnificent alternatives for their industrial focus.

In the center of the country, Mexico City has had a record of absorption, with 500 thousand square meters, but the alternatives are always the area of Toluca and Puebla.

Érick Brunet referred that despite the development and industrial growth that has brought the relocation of companies to Mexican territory, there are challenges to face.

“We continue to have great challenges such as infrastructure, mainly electrical, and secondly to understand for which niches they are more competitive, where the qualification of their workforce and the installed base of suppliers could be more competitive than the big cities. Many of these markets will compete for more basic operations that are intensive in labor and that benefit from lower labor and living costs,” he pointed out.

Although fortunately the effect of inflation has not been felt in the industrial market, since Mexico has quality of labor, cost of inputs, logistic cost, benefits from trade agreements and companies discover more and more that they can have value-added operations at extremely competitive prices, he indicated.

Source: Milenio