Industrial Market Grows 7% in 1 Year. AMPIP's Keys for Long-Term Sustainable Growth

The Mexican industrial market is not just at a turning point, but a gateway to a promising era of sustainable economic development. It's a landscape of significant momentum, brimming with opportunities and challenges, all set to be harnessed by the influx of foreign companies aiming to enter the North American market at the most competitive cost.

At the second meeting of industrial real estate market players, held in Aguascalientes by the Mexican Association of Private Industrial Parks (AMPIP) from June 19 to 21, with SiiLA as a "GOLD" sponsor, the path to steer the industrial market towards success was discussed.

Data from SiiLA Market Analytics reveals that the Mexican industrial real estate market grew by 7% in the past year, adding over six million square meters of gross leasable area. This growth can be attributed to several factors, including Mexico's strategic location near the United States, a skilled and economical workforce, lower operating costs compared to other parts of the world, and a favorable environment for foreign investment, supported by the country's macroeconomic stability and growing internal market.

To consolidate this growth, long-term strategic planning is essential to foresee and mitigate investment risks and optimize available resources. Specialists convened by AMPIP identified the following key factors:

1. Improve security, the rule of law, infrastructure, and continuous training. According to speakers like Shannon K. O'Neil, Vice President, Deputy Director, and Senior Fellow for Latin American Studies at the Council on Foreign Relations, these aspects are fundamental to attracting and retaining foreign investments and fostering a more competitive and sustainable business environment. During the AMPIP forums, it was also noted that technological innovation and digitalization play a crucial role in modernizing and enhancing the sector's efficiency, primarily in streamlining procedures and processes, improving workforce training, and implementing favorable fiscal and regulatory policies.

2. Promote public-private partnerships in the industrial sector. Specialists like Gumersindo Cue, General Director of the Mexican Energy Association, and public officials from Aguascalientes, including Governor Maria Teresa Jimenez Esquivel and the Secretary of Economic Development, Science, and Technology, Esau Garza de Vega, highlighted that these partnerships are crucial to driving investment in energy and logistics infrastructure, improving regional competitiveness, and ensuring a reliable and sustainable energy supply for industrial development.

3. Reduce the fiscal deficit and decrease informality. Some speakers, such as economist and El Financiero columnist Macario Schettino, indicated that the country's socio-economic and political environment would allow the industrial sector to continue growing despite post-electoral uncertainties. During the AMPIP meeting, it was mentioned that one of the new government's challenges would be to reduce expenses strategically to avoid institutional inoperability, enhance oversight to prevent economic losses, and increase the taxpayer base. These measures will expand the fiscal space and allow investment in initiatives that generate investor confidence, thus attracting more private national and foreign investment.

4. Adopting ESG (environmental, social, and governance) criteria to boost sustainable financing. For experts like Adrian Cuello Thomsen (BBVA), Alfredo Giorgana (JLL), Carmen Valeria De Paula (IFC), and Mariuz Calvet (Santander), sustainability is essential for obtaining green financing, which is based on meeting key performance indicators (KPIs) to offer better rates and financial conditions. This is partly because ESG criteria are related to quality standards, and greater compliance implies a higher valuation of properties. However, Giorgana noted that while properties with environmental certifications may have a "premium" in valuation terms, factors such as obsolescence and location remain more decisive when assessing the overall value of a property.

The second AMPIP meeting, sponsored by SiiLA, not only provided a platform to discuss and plan the future of the industrial sector in Mexico but also included a guided tour of the Aguascalientes Industrial Park.

On Friday, June 21, Alejandro Arguelles and Mariana Rivera, New Business Development directors at FINSA, led a tour of the industrial park, showcasing available space, expansions, and ongoing construction projects. Participants also visited the ADIENT facilities, an automotive company expanding its plant by 5,000 square meters. This plant is part of the Zeus portfolio, acquired by FIBRA Monterrey in 2023.

According to Alejandro Delgado, Country Manager Mexico at SiiLA, "We are very pleased to contribute to this great event, which is one of the few in the country where the main market players gather in an environment of active collaboration, seeking sector growth through partnership."

For more information on the most relevant events in the commercial real estate market, explore SiiLA REsource or contact us at contacto@siila.com.mx.