August 15, 2025 MexicoCRE - MexicoFDI - Newsletter Edition

Foreign Direct Investment (FDI) & Manufacturing

• Mexico set a new FDI record in Q1 2025, attracting $21.4B—a 5.4% year-over-year increase. This surge reflects investor confidence in Mexico’s industrial ecosystem and nearshoring potential.

• The manufacturing sector led inflows, accounting for over 51% of Q1 FDI, especially in automotive, auto parts, and computer equipment.

• Top sources: United States (51.2%), Germany, Canada, Japan, and Spain. Key investment destinations included Mexico City, Nuevo León, Jalisco, State of Mexico, and Chihuahua, which together received 70% of national FDI.

2. FIBRAS (Mexican REITs)

• Mexican FIBRAS rebounded strongly after a challenging 2024, with their index climbing 14% in the first four months of 2025. Monthly gains were consistent: 5.4% in Jan, 1.4% in Feb, 2.9% in Mar, and 3.6% in Apr.

• Industrial leasing renewal spreads hit 16.5% in Q1, with rental rates up to a record $6.31/sqm (5.7% YoY).

• FIBRA Macquarie reported record quarterly AFFO of $29.5M and robust NOI growth above 20% YoY in peso terms. The firm also completed a 385,000sqft industrial development in Tijuana.

• Improved conditions: Banxico’s interest rate cuts and stabilized inflation (3.93% in April) are supporting asset valuations and REIT performance.

• YTD (2025), the FIBRAS sector led the Mexican market with a 21%

3. Fibra Next & REIT Market Developments

• After seven years without new REIT IPOs in Mexico, Fibra NEXT—promoted by Fibra Uno (FUNO)—launched in July 2025 on the Mexican Stock Exchange. It focuses exclusively on logistics and warehousing assets and represents a renewed vote of confidence in Mexico’s industrial sector.

• FUNO is also advancing development projects for 2025, including Mítikah and strategies to improve office and commercial asset occupancy (projected to exceed 85% in offices and 93% in retail by year’s end).

4. Commercial Real Estate Highlights

• Recovery in office and retail segments continues: Office space occupancy hit 84% with prospects to rise further, and retail reached 93% occupancy—20% higher foot traffic than pre-pandemic figures.

• Industrial real estate remains robust, driven by nearshoring and expansion in key border cities (e.g., Tijuana, Nuevo León).

Notable Industrial and Commercial Real Estate Projects in Mexico (Jan.–Aug. 2025)

Industrial Projects

• Federal Government Initiatives (Mexico Plan):

  • Announced plans for 100 new industrial parks by 2030, with at least 13 now operational and a $625M investment slated for their deployment, focusing on strategic corridors matched to regional strengths such as logistics, energy, and sustainability.

  • $2.75B investment announced for a new industrial plant in the southeast (Kanasín, Yucatán) to bolster manufacturing capacity in the region.

  • President Sheinbaum’s administration launched tendering for 15 “well-being hubs” or industrial corridors as part of its Plan México, with significant direct job creation expected.

• Major New Parks and Expansions:

  • Over 50 industrial parks are currently under construction across northern, central, and Bajío regions, with an estimated 3,800 hectares in growth for 2025, focusing on facilities ranging from 20,000sqm to 100,000sqm for advanced manufacturing and logistics.

  • Natura Industrial Park broke ground in Tijuana (US$911M investment), covering 444 acres, with 24 new warehouses and an estimated 27,000 direct jobs.

  • Nuevo León, Bajío, Jalisco, Yucatán, and Tijuana highlighted as hotspots for new industrial park launches, with 80 new parks planned or underway in key investment corridors.

• Automotive and Manufacturing Expansions:

  • SK TEC (Irapuato, Guanajuato): MXN$380M automotive plant expansion.

  • Senyo (Japanese): $22M facility in Guanajuato.

  • Kingfa Science & Technology: $84M new plant in San Luis Potosí.

  • New steel mill in San Luis Potosí with 1.25M ton annual capacity.

Commercial Real Estate and Mixed-Use Projects

• Grupo Xcaret's Expansion (Riviera Maya):

  • Unveiled a $700M transformation of Hotel Xcaret México, adding 1,800 new rooms, multigenerational amenities, a kids-only hotel, teen clubs, new restaurants, and expanded spa facilities. The new XAL restaurant opened in Q1 2025 at La Casa de la Playa, led by Chef Andoni Aduriz.

• Mexico City—Emerging Districts:

  • Residential and mixed-use demand and pricing rising strongly in boroughs like Iztacalco, Cuajimalpa, and Xochimilco, fueled by urban renewal, infrastructure investment, and new quality-of-life features.

Summary:
In 2025, Mexico is experiencing a historic surge in industrial and commercial real estate development, driven by government initiatives, nearshoring, major new industrial parks, hospitality megaprojects, and strategic regional growth. Major investments are being directed into manufacturing corridors and new industrial zones, reshaping the country’s investment landscape.

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