Thor Urbana, a real estate investment company, has strategically acquired nine industrial properties from developer Davisa in Saltillo and Ramos Arizpe, Coahuila. These properties, totaling approximately 1.6 million square feet of gross leasable area (GLA), are a significant addition to Thor Urbana's portfolio. According to SiiLA, these properties, some located in the Santa María Industrial Park, are occupied by major automotive industry players such as Eberspächer and Yanfeng, underscoring their strategic importance.

Thor Urbana's recent transaction and expansion are a response to favorable conditions in Mexico's industrial sector. This sector features historically low vacancy rates and double-digit rent growth over the past 12 months, driven by the nearshoring trend and the consolidation of foreign investments in the country.

According to the company, the 27% growth in foreign direct investment (FDI) in Mexico between 2022 and 2023, reaching a record of over $36 billion, and the positive outlook in the first quarter of this year, with a 9% increase in FDI surpassing $20 billion, are strong indicators of the country's investment appeal. This positive outlook is primarily due to the relocation of production chains from Asia to North America, aiming to capitalize on Mexico's geographical proximity to the United States and its competitive, low-cost labor force to reduce production costs and boost the commercialization of goods and services.

In this context, Thor Urbana aims to provide quality infrastructure with flexible services in strategic locations to enhance business networks in the manufacturing and logistics sectors. The company highlighted in a statement that Saltillo and Ramos Arizpe have significantly benefited from nearshoring and foreign investment from American, Canadian, European, and Asian companies manufacturing in Mexico.

SiiLA Market Analytics data indicate, for example, that in the past year, the GLA of the Ramos Arizpe submarket increased by 7%, respectively. In comparison, the Saltillo industrial market, which includes Arteaga, Derramadero, Ramos Arizpe, and Saltillo, saw an annual growth rate of 6%. These data suggest that while some submarkets have experienced moderate growth, the region continues to show a positive trend in the industrial sector, driven by the automotive, capital goods, and electronics sectors, which account for 74% of Coahuila's industrial market.

In this regard, it is noteworthy that, according to the Secretariat of Economy, over 90% of Coahuila's international sales –encompassing exports and international transactions—end up in the United States. This is particularly significant as Coahuila and Texas are connected by three major border crossings (Eagle Pass, Del Rio, and Boquillas), which handle 6% of the cross-border land trade between Mexico and the United States, according to U.S. government data.

Coahuila's economic and commercial dynamism is reflected in the Ramos Arizpe and Saltillo submarkets, representing around 65% and 9% of the region's industrial GLA. The strong performance of these areas is essential for consolidating and strengthening Thor Urbana's portfolio in northern Mexico. Over the past year, Coahuila has seen record gross absorption and new inventory delivery over the past year, with a positive net absorption balance. This means the demand for industrial spaces has outpaced supply, with a declining vacancy rate over the past three years, below 1%. This guarantees high occupancy and significant profitability potential for investments in strategic submarkets like Ramos Arizpe and Saltillo.

Thor Urbana's portfolio expansion, now totaling over 29 million square feet in strategic locations across the country and abroad, aligns with its strategy of diversifying and investing in high-growth sectors, reflecting the favorable investment climate in Mexico's industrial sector.

For more information on this and other transactions in Mexico's industrial market, explore SiiLA REsource or contact us at contacto@siila.com.mx.