Mexico will be able to overcome a possible recession in the United States by nearshoring on the border: MEOR

Monterrey, NL. Despite the fact that analysts mention that next year there will be a recession in the United States, the effect of nearshoring will overcome this obstacle, since in Mexico and especially on the northern border there is a deficit of 11 million square meters of spaces industries, however, there will be a bonanza in the demand for industrial spaces in the next two to ten years, on the northern border.

“At MEOR we forecast that for the next two to ten years there will be a very significant demand for industrial spaces. The idea is not to slow down, we continue with the search for land for AAA industrial buildings,” he commented to The EconomistJonathan Pomerantz, Commercial and Investment Director of the real estate fund MEOR.

Recently opened the Hubs Park Apodaca, a stand alone AAA building of 18,500 square meters, in which MEOR invested 350 million pesos. The expectation for 2022-2023 is to have eight parks, for an amount of 3,800 million pesos, in Class A projects in Tijuana, Ciudad Juárez, Monterrey, Mexico City and Guadalajara, indicated the manager.

“Hubs Park stands out because we want to build warehouses for manufacturing and logistics, with better specifications, better quality and premium locations”, emphasized Jonathan Pomerantz.

He said that Monterrey is the largest industrial market in the country, which is undergoing significant development, with many lands for industrial parks; however, “with the nearshoring It is the entire northern border that is seeing this bonanza for industrial spaces”.

The company is continually analyzing other regions of the country, however, in its parks the rent is fully dollarized, and although on the northern border there is a mixture of pesos and dollars “if we want to make sure that we go for dollars, we have to go to the border area,” he stressed.

In addition, in the center and in the lowlands, the cost of land is very high, which is why they are focused on the north of the country, although they do not rule out the possibility of carrying out Build to Suit (BTS) projects or custom construction, in any part of the country.

Opportunity Areas

In all the markets in the north of the country “we are falling short in water and drainage infrastructure, we have worked hand in hand with the public sector to improve this infrastructure, practically in most of the parks we are creating electric power substations and we are also improving sewerage and water exploitation”.

“Definitely in these markets we do see this lack of infrastructure, which is already beginning to affect the projects, and also in the markets in the north of the country we see a lack of labor, there is a lot of competition to find talent and in some cases we do we are running short of people,” he warned.

To fund, MEOR has a multi-funding platform, some of the projects are built with private investors, and they have an alliance with two CKDes (Development Capital Certificates), one of them is the Monterrey Deltack (from Grupo Delta), with which they did the Hubs Park Apodaca, “we feel very comfortable with these alliances with larger funds,” said the manager.

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