The commercial real estate market in Mexico is responding as near shoring picks up steam and investors snap up land for future industrial parks. Fibra Prologis, a major real estate REIT, plans to spend US$450M in acquisitions this year, reports Bloomberg Linea.
Companies are on the hunt for vacant land in Mexico to build industrial parks and logistics centers. According to Bloomberg, Prologis recently acquired an industrial park in the city of Monterrey for US$37.2M. A plan by Tesla to build a gigafactory in Mexico has increased investors’ focus on the Monterrey region.
Mexico Real Estate
Commercial real estate in Mexico is seeing a surge of investor interest as more and more companies relocate their supply chains out of Asia and closer to the US. A Prologis executive says the land for its planned Monterrey industrial park is located in one of the “most attractive” regions of Mexico.
More Investments Planned
Prologis said it will invest US$75M in land acquisitions in Mexico this year, according to reporting by Bloomberg. According to a recent study by Mexico’s leading technology institute, the Mexico states of Nuevo Leon, Chihuahua, Baja California, Coahuila, Tamaulipas, Jalisco, Queretaro and Guanajuato are proving the most attractive to investors. Barriers to continued growth in Mexico as nearshoring attracts more and more companies include insufficient energy supply and high crime rates.