Monterrey’s industrial infrastructure allows the city to compete for the attraction of nearshoring investments.
For Monterrey, construction activity increased 30%, to close the quarter at 1.2 million additional square meters at the end of the third quarter of 2023.
While the vacancy rate of its industrial parks stood at 1.4%, the average rental price increased 16%.
According to Intercam Banco, this major city’s inventory closed the third quarter of the year with 13.8 million square meters, the largest on record and exceeding the total growth observed in 2022.
Eighty-two percent of this growth came from pre-leased properties and only 18% went to the speculative market.
A U.S. Department of Agriculture (USDA) report highlights the importance of Monterrey’s industrial infrastructure and its logistical advantages.
High-rise hotels, office buildings and commercial plazas mark the central business district of both Monterrey and nearby municipalities such as San Pedro Garza Garcia, which is often cited as the wealthiest community in all of Latin America.
Monterrey is also recognized as a popular destination for its nearby national parks and rock climbing.
Industrial Infrastructure
The USDA mentions that the varied urban landscape (from working-class neighborhoods to wealthy enclaves and fashionable districts, often all in close proximity) characterizes Monterrey’s mix of wealthy, middle- and working-class residents.
Overall, the area’s development and strong economy contrasts with the lower socioeconomic status of smaller cities and rural districts in other parts of the country.
Its proximity to the United States, but also its respective economic strength, is a magnet for migration from more rural states in Mexico and throughout Latin America.
Today, beyond its own ever-growing infrastructure, Monterrey is situated on major highways, railroads and air routes for both domestic and international transit and commerce.
The major inland port of Laredo is a short drive north.
To note: nearshoring is a business strategy that involves the transfer of some or all of a company’s operations to a nearby country.
Especially in the case of Monterrey, nearshoring involves the relocation of companies in Mexico to bring their production processes closer to the United States.