Due to the momentum that nearshoring is having, at the end of the first quarter of 2023, the starting prices of industrial warehouses located in the different states of the country reached all-time highs, reported Datoz.
According to the real estate intelligence platform, the relocation of production chains, whose phenomenon is exceeding growth projections, has caused for the first time the starting price of industrial buildings nationwide to exceed $5.00 per square meter. this after in the last five years it was quoted on average at 4.00 dollars.
According to Datoz’s product manager, Pablo Quezada, the increase in prices picked up speed starting in 2020, with the arrival of the pandemic, but with nearshoring it became more acute, since more Asian and European companies are arriving, exceeding the estimate ; If the period from January to March 2020 is compared with the first quarter of 2023, the increase in outlet prices nationwide was 22 percent.
“We will see that the prices of both outlets continue to increase due to the rise in the prices of construction inputs, which, in part, is due to the industrial concentration of this segment in Mexico and the scarcity of the supply of industrial spaces “, said.
There are more factors that generated this growth in nearshoring and prices in the first quarter, and they focus on the fact that the war between Russia and Ukraine has not yet ended, added to the fact that the trade war between the United States and China has worsened.
“These factors continue to make Mexico an attractive place for manufacturing and logistics, and there will be a tendency to regionalize, that is, regions with supply chains will consolidate. We can consider these factors as structural and that continue to make Mexico an attractive place for investment in this secondary sector”, he explained.
Pablo Quezada explained that nearshoring influenced the increase in starting prices because it already generated a shortage of supply of industrial spaces in some important markets, such as Mexico City and Juárez in Chihuahua.
As an additional point to this price increase, he highlighted the increase in interest rates, added to the fact that the upward trend will probably continue in the following quarters.
“The rise in the prices of construction inputs such as cement, the difficulty in supplying energy to industrial parks and, finally, the rise in interest rates caused by the Central Bank to control inflation are factors that add ”, he added.
The average rental price per square meter per month at the national level also increased to 5.16 dollars, 10% higher than the same quarter of 2022.
In this regard, Datoz market analysts, Silvia Gómez, explained that border markets have had greater impacts on rental prices due to the demand for space and the challenges facing the region in terms of energy.
Regions
Of the five regions that Datoz evaluates (Center, Northeast, Bajío-Occidente, Northwest and Southwest), the Northwest had the highest starting price, since on average the industrial spaces in commercialization were quoted at $6.21 per square meter in the first quarter of 2023, increasing 14.5% annually.
Three of the four industrial real estate markets that registered starting prices above $6.00 are located in this region: Tijuana with $7.43 (annual increase of 11%), Ciudad Juárez with $6.89 (25%) and Chihuahua with $6.14 ( 33 percent).
According to information from Datoz, these three northern cities have been the ones with the greatest increase in prices if the first quarter of 2020 is compared with the same period of 2023, “in Ciudad Juárez it rose 57%, Chihuahua 42% and in Tijuana 44 percent.”
