The diverse manufacturing, logistics and transportation sectors account for 77% of cumulative gross absorption, according to CBRE. Construction and commercialization of new spaces remains strong, despite a slight contraction in net absorption.

Monterrey, NL. The diverse manufacturing , logistics and transportation sectors dominated industrial demand in Monterrey   at the end of the second quarter of 2024, accounting for 77% of cumulative gross absorption, according to an analysis carried out by the consulting firm CBRE.

Built-to-suit (BTS) projects and pre-leasing accounted for 67% of this figure. The delivery of these types of properties continues to be the main driver of net absorption, which totaled 794,000 square meters at the end of the first half, representing a 6.8% decrease compared to the same period last year.

Vacancies of 85,000 square meters and new speculative supply allowed an increase in the direct vacancy rate, which went from 1.4% in the first quarter to 2.5% at the end of the second quarter of this year.

According to CBRE, at the end of the first half of 2024, the diverse manufacturing sector remained   as the main driver of industrial demand in Monterrey, with 53% of the total marketed surface area, equivalent to more than 378,000 square meters. The logistics and transportation sector continues to grow and now represents 24% of gross absorption, while the automotive sector ranks third with 18 percent.

As for the country of origin of this industrial demand in the state, the United States leads with more than 398,000 square meters (56%), followed by Mexico (13%) and China (10%). The average size of the transactions remains at 13,000 square meters during the first half of the year. The Apodaca submarket also leads this industrial activity, representing 45% of the total leasing.

“The inventory continues to grow rapidly, with 1 million square meters delivered during the first half of the year, closing at 15.3 million square meters at the end of the first half of 2024,” said Ramón Flores, executive vice president of CBRE Mexico , Northeast division.

Greater clarity for companies with expansion projects

The pace of growth is expected to remain strong for the rest of the year, as construction activity remains above one million square meters. Currently, 43% of this development area is being marketed, leaving 600,000 square meters for pre-leasing.

In addition, 540,000 square meters are being monitored in the planning stage, compared to 800,000 square meters in the first quarter of the year.

The outlook for the rest of the year remains positive, given the completion of the electoral processes in Mexico and the pipeline of industrial projects under development . This provides greater clarity to companies in their expansion projects and strategies for working with the new governments. Work also continues on projects to increase the supply of electric power in the industrial parks of the region, one of the current challenges of the market.

Information taken from:

El Economista. Diverse manufacturing was the main driver of the industrial real estate sector in Monterrey: CBRE