Investments Diversity: 180 National and International Companies Bet on Mexico, Occupying 1.5 Million m²

Investment from both national and foreign companies continues to flow into Mexico. Between January and September 2023, at least 180 companies debuted in the Mexican industrial sector by acquiring over 1.5 million square meters of property, according to data from SiiLA. Of these, 39% were Mexican companies, while American and Chinese firms dominated among the foreign entrants, accounting for 22% and 8% of the new investments, respectively.

These figures reflect a consistent growth in investor confidence in Mexico's industrial potential, supported by its strategic location, skilled workforce, and continuously developing infrastructure. This growth is also evident in foreign direct investment (FDI). According to Mexico's Economy Secretariat, Mexico attracted $32.926 billion in FDI during the first nine months of 2023, marking a 30% increase compared to the same period in 2022.

Data from SiiLA Market Analytics also indicates that Mexican and American companies have led in industrial property acquisitions nationwide for the year thus far, with nearly 681,000 square meters occupied. However, a regional analysis reveals that, collectively, companies from Asia have made the most significant inroads into the national territory.

Turning our focus to foreign companies, those hailing from Asia have absorbed around 416,000 square meters in 2023, followed by North American companies (USA and Canada) with over 360,000 square meters occupied, and European companies with approximately 344,000 square meters acquired. Well-known companies such as the German AGP Glass, Canadian Skyjack, Taiwanese Wiwynn, and Korean Hiho Metal are among this group.

The remaining foreign investments belong to Latin American and African companies, with over 15,000 and nearly 2,500 square meters occupied, respectively. Meanwhile, Mexican companies have dominated property acquisitions, occupying almost 404,000 square meters this year.

Productive Sectors and Strategic Locations

The companies entering the Mexican industrial market for the first time represent various productive sectors. However, nearly half of the gross leasable area (GLA) they acquired fell into the hands of automotive, manufacturing, and capital goods companies, primarily from Europe and North America.

Like companies choosing to expand in Mexico, the newcomers this year have opted for high-quality spaces located in regions near the northern border or in densely populated areas where last-mile distribution facilities abound.

In general, in 2023, Mexico City, Guadalajara, Monterrey, and Queretaro have been the preferred destinations for national and foreign companies. Mexican companies have prioritized places like Monterrey and Queretaro, which together account for 44% of the space acquired by these firms.

On the other hand, 46% of the space occupied by Asian companies is located in Aguascalientes, Queretaro, and Monterrey. Furthermore, 53% of the space occupied by North American companies is in Mexico City, Monterrey, and Queretaro, while 71% of the space acquired by European companies is distributed among Mexico City, Monterrey, and Guadalajara.

In contrast, Latin American companies have focused their operations in Mexico City and Monterrey, which comprise 62% of the space these companies occupy, while African companies have ventured to Mexicali, Baja, California.

These data indicate a robust momentum in the Mexican industrial sector, driven by various favorable factors that appeal to domestic companies and international investors. For more information on these and other trends in Mexico, explore SiiLA REsource or contact us at contacto@siila.com.mx.