2023-04-20 13:12:52
The impact of the arrival of the multinational Tesla to build the first factory in Latin America is not an isolated or determining issue in the industrial real estate evolution of Monterrey. This scenario that will bring regarding the construction and operation of the largest electric vehicle plant in the world is the achievement of the dynamism that this industrial furniture market has experienced for years. Those who follow its evolution know that the industrial corridors in this market have always had the participation of the logistics and manufacturing sectors. But it was in 2021 when the dynamism encouraged by automotive production raised its participation in absorption levels, rising from 25% to 34% at the end of 2022.
This movement was generated without Tesla and goes beyond that market because it is expected to affect the Santa Catarina corridor, but also Coahuila, especially the Ramos Arizpe market, which only in 2022 multiplied its annual absorption by 2, according to with estimates from Newmark’s Monterrey office led by Armando de la Fuente and Rodrigo Gardner.
This perspective is not isolated. Since 2015, the population in the entity has grown at an annual rate of between 1.2 and 1.5%, as a result of the migration of employees from other states. It is estimated that 65,000 Veracruzans have moved in the last 7 years, according to INEGI data.
One of the areas of opportunity is how this market will support qualified labor and industrial spaces, if the demand for class A spaces continues. In the last 2 years, the availability of class A inventory decreased from a rate of 7% to 1% , and even zero in some corridors.
At the end of the first quarter of the year, class A industrial availability amounted to 129 thousand m2, with rental prices of US$5.80 per month and a record number of space under construction of 1.2 million m2.
The dynamism generated by the moment of opportunity created by the nearshoring made most of the construction projects in Monterrey, which are estimated to add up to 1.3 million m2, be buildings build to suit and a reduced proportion of speculative buildings. And not only that, the prices per m2 of rent for Class A buildings have increased 25% in the last year.
According to Amexcap, investment funds have up to 20 billion dollars to invest in startups and projects related to nearshoring. Those who follow the Monterrey market, which currently has an inventory of 7.9 million m2, know that there are no 10,000 m2 land available in markets adjacent to Santa Catarina, just where Tesla was installed. This aspect is the result of the installation of different providers who envisioned their arrival, as well as those who, following the announcement, seek space to be part of the chain.
In addition to the above, the effect generated by the manufacturing, household appliances and automotive industries through the installation of companies from Asia stands out. Since July 3 years ago, the Monterrey market maintained the leadership with demand, a vacancy rate of 2.2%, a gross absorption of 258 thousand m2 and construction on the rise.
At that time, 61.8% of the absorption was generated by build-to-suit (BTS) projects of the 713 thousand m2 that were being built at that time.
Therefore, the demand for class A industrial space in the sub-markets of Santa Catarina and Victoria concentrated 26.3% and 22.6% of what was absorbed by the market.
This inertia caused the net absorption of that period to reach 389 thousand m2 as a reflection of the dynamism that the region is experiencing, where on average, weighted rental prices of 4.74 dollars per m2 per month are offered.
Faced with this scenario, in recent days Finsa and an affiliate of Walton Street Capital LLC, finalized the sale of the Zeus Portfolio, the second largest industrial real estate operation in Mexico equivalent to 662 million dollars. The 46 stabilized and LEED-certified buildings that make up the portfolio were developed and acquired with capital from the CKD listed in 2025 on the BMV for an amount of 5 billion pesos, passed into the hands of Fibra Monterrey. Said sale allowed the completion of the three stages of these vehicles: investment, stabilization and divestment.
But the industrial movement is not exclusive to the Tesla phenomenon. The office and housing market is also expected to have a positive effect. Only in the office market is greater demand expected, just in the Santa Catarina and Santa María corridors, a fact that is coupled with the slowdown in the space vacancy rate, dynamics of which a constant quarterly reduction of 1% per period is expected .
In short, the Sultana del Norte maintains an incomparable moment and from which incursions are still expected.
Facebook: Claudia Olguin Mx
Twitter: @claudiaolguinmx
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