May 15, 2025 MexicoCRE - MexicoFDI - Newsletter Edition

Over $6.5 Billion in New Investments

🌟 Nearshoring To Mexico Continues to Surge

As global supply chains continue to evolve, Mexico's strategic position as a nearshoring destination is reaching new heights. The first quarter of 2025 has witnessed new investments across multiple sectors, with particular strength in automotive, industrial real estate, and infrastructure development. This surge is backed by significant foreign direct investment, especially from USA, Asian and European manufacturers seeking to establish or expand their North American presence .

🏭 Automotive Sector Leading the Charge

Major Investments Across Key Manufacturing States

The automotive sector continues to demonstrate robust growth with several significant investments:

• Guanajuato's Automotive Powerhouse:

  • SK TEC announced a $380 million MXN expansion of their automotive plant in Irapuato

  • Japanese manufacturer Senyo committed $22 million for a new facility

  • Mazda reaffirmed their investment commitment during the Governor's visit to Japan

  • The state secured $48.1 million in automotive investments during Q1 2025

• San Luis Potosí's Industrial Expansion:

  • Kingfa Science & Technology announced an $84 million investment for a new plant

  • A major steel group is establishing a new steel mill with 1.25 million tons capacity

• Puebla's Resurgence:

  • The region is experiencing renewed automotive investments following U.S. tariff relief

  • Multiple OEMs are considering expansion plans in the region

🏗️ Industrial Real Estate Market Dynamics

Record-Breaking Development Activity

The industrial real estate sector is experiencing unprecedented growth :

• State of Mexico (EdoMex) Boom:

  • AMEFIBRA announced $5.63 billion in new projects

  • The region has attracted $3.7 billion in industrial and logistics investments

  • Vacancy rates remain at historic lows of 8.5%

• Valley of Mexico Demand Surge:

  • Industrial warehouse demand continues to rise

  • E-commerce driving significant space requirements

  • Average industrial rents reached $8.44 per square foot, up 6.7% year-over-year

• Monterrey Market Dynamics:

  • Strong start to 2025 with industrial and financial sector growth

  • Office market showing stability with increased demand from manufacturing companies

🚢 Infrastructure & Regional Development

Strategic Port Expansion and New Industrial Projects

• Progreso Port Expansion:

  • Major infrastructure project to create a deep-sea port

  • Channel widening to over 500 feet and depth increase to 47 feet

  • $367 million government investment as part of $1.6 billion national ports initiative

  • Expected to handle increased cargo volumes and larger vessels

• New Manufacturing Facilities:

  • Grupo EPTA announcing new plant construction in Querétaro

  • Foxconn exploring investment opportunities in Ciudad Obregón

  • ATECS establishing new facility in León for electric vehicle components

📊 Market Analysis & Future Outlook

The current investment landscape reflects strong confidence in Mexico's manufacturing and logistics capabilities:

• Investment Trends:

  • Continued shift of manufacturing from Asia to Mexico

  • Strong focus on EV and sustainable manufacturing

  • Rising industrial rents across key markets

• Regional Highlights:

  • Bajío region (including Guanajuato, Querétaro, SLP) leading in automotive investments

  • EdoMex emerging as prime industrial real estate market

  • Yucatán positioning for increased trade through Progreso port expansion

• Nearshoring Impact:

  • Supply chain resilience driving location decisions

  • USMCA benefits attracting more Asian and European manufacturers

  • Infrastructure investments supporting growing industrial demand

🔮 Looking Ahead

As Mexico continues to capitalize on nearshoring opportunities, the industrial real estate and manufacturing sectors are poised for sustained growth. The combination of strategic infrastructure investments, automotive sector expansion, and robust industrial real estate development creates a strong foundation for continued economic development. With over $6.5 billion in announced investments this quarter alone, Mexico's position as a prime nearshoring destination continues to strengthen.

DiscoveryCRE is Mexico's Premier Commercial Real Estate Liaison Specializing in Nearshoring and Industrial Tenant Site Selection. We help companies make informed SITE SELECTION decisions. Manufacturing and Logistics Operations.

When nearshoring to Mexico, having the right partner makes all the difference. Our team primarily represents industrial tenants and buyers providing expert site selection and facility acquisition for manufacturing and logistics companies across Mexico.

Ready to simplify your Mexico expansion?

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Mexico Toll Free number 800 099 1437
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Thank you for reading our edition of the MexicoCRE Newsletter. Stay tuned for more updates and investment opportunities! 🙏