LG Pays a Premium to Macquarie in a Slower Apodaca

The transaction is part of LG's broader expansion strategy in Mexico. In 2025 alone, the company announced investments of nearly $400 million, including a new plant in Querétaro, the relocation of operations from Mexicali to Reynosa, and additional production capacity in that same city.

Against that backdrop, the Apodaca facility joins five others that LG and its various divisions have added across Mexico over the past 12 months, contributing more than 80,000 square meters to its production infrastructure. Altogether, that represents an expansion of roughly 26% of its industrial footprint in the country over the past year.

The choice of submarket was not accidental. Nearly one-third of the industrial space occupied by LG in Mexico is located in Monterrey, primarily in Apodaca, whose industrial profile helps explain that concentration.

In that submarket, capital goods, electronics, and vehicles and parts account for roughly 39% of occupied industrial space and represent nearly four out of every ten tenants. It is therefore not surprising that a company with interests in electronics and electric mobility continues expanding there.

Nevertheless, LG's expansion is taking place in a market that has shown signs of slowing over the past three years. According to SiiLA, the submarket's gross and net absorption posted compound annual growth rates of -29% and -23%, respectively, while new inventory deliveries increased by roughly 14% annually. As a result, the vacancy rate rose gradually, remaining at 4.6% as of the first quarter of 2026, below the metropolitan average of 6.1%.

The slowdown, however, did not imply a loss of demand. Despite lower absorption volumes, the balance between occupied and vacated space remained favorable throughout the period: for every square meter vacated, more than five were absorbed. At the same time, asking rents grew by nearly 14% annually, reaching approximately $7.50 per square meter by the end of the first quarter of 2026.

In that context, LG's transaction suggests that Apodaca's recent moderation has not necessarily reduced the appetite for the best-positioned assets. On the contrary, some companies appear willing to pay above-average rents for locations capable of integrating into already established production networks.

For more information on Mexico's industrial real estate market and its leading occupiers, visit SiiLA Market Analytics or contact us at contacto@siila.com.mx.