Industrial spaces and foreign investment in Mexico
In 2022, against the backdrop of economic recovery, Mexico’s Foreign Direct Investment (FDI) mainly focuses on acquiring industrial space to boost business operations in diverse industries.
All that effort has resulted in many North American and Asian companies being interested in Mexico due to its strategic location and accessibility to other markets.
Moreover, the country offers a competitive advantage in logistic infrastructure.1 It consists of 49 customs offices, 58 ports and terminals in the Pacific Ocean, 59 terminals in the Gulf of Mexico and the Caribbean, and 15 highway corridors.
Considering this situation, industrial developers in Mexico have incorporated innovative construction and financial plans to promote Foreign Direct Investment. This means higher space availability, with over 13 million sqft distributed in key locations throughout the country.2
Industrial spaces and their key role in the economy
Foreign investment in Mexico is one of the most critical post-pandemic recovery factors. This was observed when FDI reached US$ 31,621 million3 in 2021, 8.7% higher than in 2020, according to a preliminary data comparison for both periods conducted by the Ministry of Economy.
In 2020, Mexico ranked as the ninth largest recipient of FDI worldwide, driven by resources from various markets, primarily North America, Europe, and Asia.
The manufacturing industry gained the most, accounting for 40% of FDI, followed by mining and finance (15% each).
Out of the 2021 total, 44% represents new investments, whereas, in 2020, the figure was 24%.
Industrial parks’ role in FDI
Industrial parks are essential areas for the growth of multiple industries. It provides suitable conditions and infrastructure so that companies can carry out their operations.
By 2021, it was estimated that more than 70% of the lessee on national territory were foreign companies, thus illustrating the importance of industrial spaces in the economy. Throughout that time, the most active countries were as follows:
- United States (23%)
- Japan (5%)
- Germany (4%)
- Canada and France (2%)
- Spain and China (1%).
Meanwhile, the automotive and auto parts manufacturing industry (24%), logistics centers (16%), and, to a lower degree, electronics, metalworking, and food and beverages companies, were among the sectors with the highest contribution.
Strategic locations for foreign investment in Mexico
Its proximity, the large border with the United States, and the huge variety of ports and infrastructures make the country a strategic location for companies from all over the world.
Given Mexico’s favorable conditions for company’s expansion or the relocation of their operations, the cities with the highest demand for industrial space in the country during the first half of 2021 were:
- Mexico City: 5.9 million sqft.
- Monterrey: 5.1 million sqft.
- Ciudad Juárez: 3.6 million sqft.
- Tijuana: 2.9 million sqft.
- Guadalajara: 2.7 million sqft.
- Saltillo: 2.2 million sqft.
Knowing the value of industrial spaces to enhance business operations, Advance Real Estate provides great support when looking for industrial parks adapted to the market’s needs, offering benefits such as:
- Security. It has 24/7 surveillance and controlled access in all its industrial spaces, trained personnel to respond to any emergency, and more.
- Sustainability. We strive to perform our activities sustainably in our parks, committing to the community.
- Customer Service. Our on-site management and team service will support you as required so that you only have to worry about your company’s operations.
At Advance Real Estate, enhance your company’s operations by placing its operational centers in Mexico’s most important strategic locations.
Information Sources:
- embamex.sre.gob.mx/espana/…/Brochure14razones.pdf
- inmobiliare.com/demanda-de-espacios-industriales-en-mexico-atraen-inversion-extranjera
- elpais.com/mexico/…/la-inversion-extranjera-en-mexico-aumenta-un-9-en-2021-pero-se-mantiene-en-niveles-de-hace-un-lustro.html
