Mexico is one of the most attractive destinations for international companies to settle and relocate their operations and supply chains, a situation that has been a catalyst for the local stock market, with the most benefited sector being real estate leasing, related to Fibras, according to Heriberto Sandoval, Investment Advisor at Increasekapital.
Within real estate, the segment that has benefited the most from the nearshoring trend is industrial leasing, which includes Fibra Monterrey, Fibra Terrafina, Fibra Prologis, Fibra Uno and Fibra Macquarie, added Sandoval.
The attractiveness of the country’s industrial real estate sector lies in the fact that it is less cyclical compared to the commercial and office sector, it has more predictable rents in dollars and longer-term contracts (3-5 years minimum), large land reserves for expansions and the participation of companies whose presence in some cases exceeds 20 years, according to a study carried out by Roberto Solano, manager of stock market analysis at Monex.
From 2020 to date, the Fibras of the industrial sector have been the favorites of investors, due to fundamentals, aspects of resilience against the environment and a shorter recovery period compared to the commercial and office sector, added Solano.
In 2022, the sector had an annual growth of 30% and registered an average occupancy of more than 97%, indicated Sergio Argüelles, president of the Mexican Association of Private Industrial Parks, in a podcast of Grupo Financiero Banorte. The expansion was partly driven by the automotive sector, including the manufacturing of parts and electric cars.