Occupation of industrial warehouses in Mexico slows down

Nearshoring successful Mexico is losing gait arsenic the concern of concern spaces decreases, according to commercialized existent property marketplace quality institution SiiLA.

The reconfiguration of planetary proviso chains pursuing the COVID-19 pandemic spurred important investments successful Mexico arsenic companies looked to make nearshoring activities successful North America.

Following 4 record-breaking years, the nearshoring improvement successful Mexico appears to beryllium slowing. Around 31% less overseas companies inhabit warehouse abstraction successful Mexico compared to during the nearshoring highest successful 2021, according to SiiLA’s analysis.

“Nearshoring to Mexico is not an inexhaustible root of caller companies. What was an avalanche of investments 3 oregon 4 years agone is present a little frenetic flow. This, acold from being a crisis, is simply a earthy accommodation of the market,” SiiLA states.

“This does not mean a situation for the concern existent property sector, but the signs of recession and the protectionist measures of the United States person added uncertainty to the outlook and affected concern expectations,” the steadfast added.

SiiLA estimates that implicit 1,200 companies entered Mexico’s concern existent property marketplace betwixt 2020 and 2024. Around fractional of them were overseas companies looking to trim operating costs.

After respective record-breaking years, the menace of tariffs is 1 of the factors causing Mexico’s booming concern existent property marketplace to dilatory down. (Shutterstock)

These companies occupied astir 4 retired of each 10 quadrate meters of concern abstraction successful Mexico from 2021 to 2024, equivalent to astir 13 cardinal quadrate meters.

The introduction of caller Mexican companies to the abstraction has besides fallen by 43%, according to SiiLA.

In 2024, astir 5.26 cardinal quadrate meters of concern warehouse abstraction was occupied, marking a alteration of 14.7% from 6.17 cardinal quadrate meters successful 2023.

The caller menace from U.S. President Donald Trump of 25% tariffs connected Mexican products has made investors wary, with galore present successful wait-and-see mode.

Silvia Gómez, a marketplace expert astatine existent property information tech bureau Datoz, does not judge the tariffs volition dramatically alteration Mexico’s concern environment, though immoderate regions of the state whitethorn beryllium affected much than others.

“Some companies whitethorn marque the determination not to acceptable up store [in Mexico], but it volition not beryllium the majority. Many others are already established and person benefits, specified arsenic bully labour and taxation incentives. Despite the unit and tariffs, we proceed to spot concern announcements,” Gómez was reported saying by quality tract El Economista.

Mexico’s main concern regions

The concern warehouse marketplace successful Mexico’s Bajío portion — comprising the states of Aguascalientes, Guanajuato, Querétaro, Jalisco, Zacatecas, Michoacán and San Luis Potosí — experienced beardown growth successful 2024, wherever the nett absorption of warehouse abstraction was astir 28.28% of the nationalist total, according to Datoz.

Investment continues contempt the slowdown: Mercado Libre, Mexico’s starring warehouse tenant, plans to put US $2.5 cardinal successful the state successful 2025. (File photo)

Nationwide, the Argentina-based Amazon rival Mercado Libre was the biggest warehouse tenant successful 2024, occupying 11% of the full rented quadrate meters successful Mexico and the steadfast announced plans to invest U.S. $2.5 cardinal successful Mexico successful 2025.

There has been an influx of concern from China successful Mexico successful caller years, with Chinese firms taking implicit astir 3 cardinal quadrate meters of concern warehouse abstraction betwixt 2019 and 2024.

“From 2019 to 2024, investments from Asia represented 61% of the full accumulated request (for concern warehouses) for nearshoring successful Mexico,” the commercialized existent property services and concern steadfast CBRE Mexico stated.

In summation to Chinese companies, firms from the U.S., South Korea, Taiwan, Germany, Canada, Denmark, Italy, Switzerland, France and Sweden each rented warehouse space.

Some of the main industries investing successful nearshoring activities successful Mexico are the automotive, household appliances and physics devices industries.

With reports from El Economista and Forbes México