Tesla, the US-based electric vehicle and clean technology company, has announced plans to build a massive gigafactory in Mexico's Santa Catarina submarket of Monterrey. The project will involve a staggered investment of approximately $5 billion and will have a significant impact on the region and the automotive industry as a whole. It is expected to generate over 6,500 direct and indirect jobs, promote technological innovation, and positively impact the environment through the production of clean technologies.

Santa Catarina is the fourth submarket with the most square meters of Class A and B industrial inventory in Monterrey, after Apodaca, Cienega de Flores, and Guadalupe. According to SiiLA Market Analytics, this industrial submarket has grown by almost 20% between 2019 and 2022. The industrial real estate sector in Santa Catarina has been stable in terms of demand, with more space generally occupied than released. Gross absorption practically doubled in the last three years, while the incorporation of new inventory had a general upward trend, suggesting increasing demand in an attractive investment market.

Until the end of last year, Santa Catarina was a hub for companies dedicated to capital goods, transportation and logistics, industrial manufacturing, mining, metallurgy, and steel. These sectors comprise half (51%) of the square meters occupied in the submarket, with well-known companies such as Amazon, DHL, Estafeta, FEMSA, and Toyota already operating in the area.

The geographic location of Santa Catarina is strategic, as it is close to important communication routes, such as the highway to Saltillo and the highway to Reynosa, which facilitates the transportation of goods and merchandise. Additionally, Santa Catarina has a skilled and specialized labor force in different industrial areas, making it a suitable place to establish manufacturing and production operations. Finally, the local government has implemented policies and programs to support investment and industrial development in the region, encouraging new companies' arrival and consolidation of existing ones.

The construction of Tesla's gigafactory in Santa Catarina will have a positive impact on the region's economy, generating jobs and promoting innovation while further developing Mexico's automotive and clean technology industries. If you want more information and insights on Mexico's commercial real estate market, please visit SiiLA or contact us at contacto@siila.com.mx.