Nearshoring in northern Mexico: will the boom of foreign companies continue?

By Editorial

Ciudad de México

September 26, 2022

Although 2021 was a year with excellent results at the national level for the industrial real estate sector, in the northern markets (from Monterrey to Tijuana) activity accelerated to such a degree that historical records were broken in building construction, inventory expansion and sale of industrial land . 

According to CBRE reports , in 2021 the  performance of the main industrial cities in the north of the country was determined by the rise of electronic commerce, as well as by the reactivation and expansion of industries such as the automotive, manufacturing and logistics industries.


Nuevo León, one of the main markets for nearshoring

In the global economic context left by the pandemic, companies in the United States are increasingly abandoning the practice of offshoring  (production in low-cost overseas countries, mainly in Asia)  opting instead for nearshoring , that is, In other words, moving part of its production processes to a country close to the end customer with the aim of reducing costs, mainly labor and supply chain.

Thus, since 2020, one of the most benefited nearshoring markets  in Mexico has been Monterrey. In which 52% of the total absorption of industrial space in the country is concentrated. This is a reflection of the  increase in foreign direct investment (FDI) in the entity , which in the first nine months of 2021 ranked second nationally in attracting FDI with 2,322 million dollars (9.4% of the total only due to below Mexico City, with 16.5%).

In addition to a diversified industry and proximity to the United States, three factors drove nearshoring transactions in Nuevo León:

  • Wide availability of specialized labor.
  • Industrial land with services (water and electricity) available for development.
  • Solid export levels to the United States.


At  Frontier Industrial  we invest in strategic regions for the national economy. For this reason, our new Frontier Industrial Park – Escobedo NL has land available for BTS projects and speculative buildings in the pre-construction process, with which we offer solutions to global logistics and manufacturing companies that seek to expand and consolidate their footprint in the North America region. 

*BTS – e-commerce Parque industrial Frontier Escobedo N.L. (2022)


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