The Prosperous Industrial Real Estate Market in Mexico. Key Sectors and Their Impact on the Economy

The significant growth of Mexico's industrial real estate market reflects the economic stability contributed by specific productive sectors to the national economy. Currently, 82% of the industrial space in the country is occupied by companies in the manufacturing, consumer goods, and transport & logistics industries, according to SiiLA data. While Manufacturing companies take the lead in the real estate landscape, occupying 55% of Mexico's industrial gross leasable area (GLA), consumer goods and transport & logistics companies occupy 19% and 9%, respectively.

These three industrial sectors have gained prominence in Mexico thanks to several factors that have spurred the nearshoring phenomenon, such as the trade relationship and free trade agreements with the United States, the competitive labor force, and the growth of e-commerce. In fact, these three sectors generate approximately 28% of Mexico's Gross Domestic Product (GDP), according to data from the National Institute of Statistics and Geography (Inegi).

Manufacturing

Manufacturing means producing goods or products by transforming raw materials, components, or materials into finished products. This process involves various activities, including design, manufacturing, assembly, quality inspection, and product distribution.

The manufacturing sector, encompassing nine productive activities, occupies approximately 43.5 million square meters of Class A and B properties nationwide, with a significant concentration (47%) in Monterrey, Guanajuato, and Saltillo, according to SiiLA Market Analytics.

Within manufacturing, the automobile industry dominates with 21.7 million square meters, followed by capital goods and packaging industries with 8.6 and 3.8 million square meters, respectively. These three industries account for 78% of the national manufacturing GLA. The remaining space is occupied by companies in construction, aeronautical, mining, metallurgy & steel, paper & cellulose, as well as chemical & petrochemical sectors.

Consumer Goods

Consumer goods are designed and intended to be purchased and used by individuals or families to meet their needs and desires. These products are characterized by being acquired by end consumers instead of products intended to produce other goods or services (industrial or business outcomes).

Companies specializing in consumer goods occupy 14.7 million square meters in the country, primarily distributed between Mexico City (26%) and Monterrey (19%), with a significant presence in Tijuana (13%), Ciudad Juarez (12%), and Guadalajara (12%).

This category highlights electronics and non-perishable consumer goods companies, occupying 6.9 and 6.8 million square meters, respectively. These two industries account for 93% of the GLA in the consumer goods industry nationwide. The remaining space corresponds to the clothing & accessories sector, covering over one million square meters of Class A and B space in Mexico, according to SiiLA.

Transport & Logistics

Transport & logistics are fundamental elements in supply chain management and the distribution of goods and services. Transportation involves the physical movement of goods and people, while logistics encompasses efficient planning and coordination of activities to ensure timely and cost-effective product and service delivery.

Companies in this productive sector occupy nearly seven million square meters in the country, with a significant concentration (40%) in Mexico City and a strong presence in Monterrey (14%) and Guadalajara (10%). Specifically, enterprises dedicated to transport & logistics activities occupy 99% of the space allocated to this industry, with the remaining 1% belonging to companies involved in importing and exporting goods.

Understanding the distribution of industrial sectors at the national level provides insights into the dynamics of Mexico's industrial real estate market and its influence on the country's economy. For more information on real estate sector trends, visit SiiLA REsource or contact us at contacto@siila.com.mx.