U.S., Japan and Germany dominate the industrial occupation in Mexico

Alejandro Delgado, the Country Manager of SiiLA Mexico, recently shared in an interview with El Economista that Mexico leads Latin America in industrial assets, with 60 million square meters. In terms of manufacturing, Delgado predicted a significant increase in growth, stating that the sector is experiencing a historical moment in terms of square meters absorbed, which reflects the amount of investment currently being deployed in the country.

The manufacturing industry is a crucial pillar of Mexico's economy, generating one-fifth of its GDP. According to data from the National Institute of Statistics, Geography and Informatics (INEGI), the economic output generated by industrial manufacturing activities has increased by 11% over the last five years. The industrial real estate market in Mexico has practically doubled in the last three years, which makes it important to ask: which countries are the three main tenants of Mexico's industrial market?

SiiLA Market Analytics reveals that Mexican companies occupy 25% of the existing square meters of Class A and B industrial properties in the monitored markets nationwide, making them the second-largest tenant in terms of square footage occupied. However, U.S. companies have the highest occupancy rate nationally, occupying more than 33% of the existing industrial square meters. SiiLA's data indicates that 44% of these corporations are engaged in the manufacturing sectors of capital goods, vehicles, parts, and services.

Japanese companies are the second most significant foreign tenant in the Mexican industrial market, occupying 9.5% of the existing industrial square meters, with 43% of them dedicated to the vehicle and parts industry, followed by capital goods (27%), electronics (6%), and mining, metallurgy, and steel (6%).

German corporations occupy just over 7% of class A and B industrial square meters, with 61% of them engaged in the vehicle and parts and capital goods production sectors.

If you are interested in obtaining more information and insights about Mexico's commercial real estate market, please visit SiiLA's website or write to contacto@siila.com.mx.