Industrial real estate sector is boosted by investments in nearshoring of 17,200 million dollars during 2022

The industrial real estate sector is experiencing one of its best moments in Mexico and this is largely due to the practice of nearshoring, where different companies have opted for relocation to make their operations more efficient. According to the firm Credit Suisse, so far this year nearly 17.2 billion dollars of investment have been received for this concept, which has helped boost demand from industrial spaces.

According to the second edition of its Nearshoring Tracker report, at least 20 investment announcements related to the nearshoringwhich represent an investment of 2,050 million dollars, with the automotive industry being the most dynamic in terms of investment.

The automotive industry continues to be the main driver in terms of amount invested, with VW, Continental, Pirelli and Michelin announcing new investments. Still, we shouldn’t overlook a fairly diverse set of announcements this month (October) across HVAC, machinery, furniture, consumer, plastics, electronics and, surprisingly, textiles.” the report.

According to the report, which is based on different sources of information, the nearshoring has taken relevance in the dynamism of the industrial real estate sector. According to the firm, at the end of the first quarter of the year it represented 40% of the demand for industrial spaceswhile in other years this percentage was 15 percent.

Automotive industry, highlights

Among the recent investment announcements for Mexico, Credit Suisse highlights those made by companies in the automotive industry, especially for the development of electric cars.

“We highlight that both VW and Audi announced incremental investments to increase the production of electric vehicles in Mexico, while Mazda announced that it will bring the production of the CX3 model from Japan, and BRP began the construction of its new electric motorcycle plant in Mexico. Bajío, announced since last year”, says the report.

In this context, the analysis highlights that it was positive that the United States will not initiate an arbitration panel regarding the law of the Mexican Electric Industry, because if it had occurred, it could lead to a scenario of commercial sanctions that would hinder the activity of nearshoring.

For Credit Suisse, investment vehicles with the potential to develop new industrial spaces are the ones that have had a better performance in terms of profitability, due to the dynamics and perspectives presented by the activity of the nearshoring.