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The evolution of industrial parks after two years

The evolution of industrial parks after two years

The evolution of industrial parks was two years later, in the 1980s. Mexico began its path through economic globalization. And the search for Foreign Direct Investment (FDI). First, it was with the General Agreement on Tariffs and Trade (GATT) entry. Later, in the 90s. The North American Free Trade Agreement (NAFTA) entered into force. Which was recently modernized to become, in 2020. In the T-MEC. The new Treaty between Mexico, the United States, and Canada.

Industrial parks in Mexico. They have traditionally aligned themselves with policies related to attracting FDI. The evolution of industrial parks after two years, which our country has implemented. And they have sought a deep understanding of the fundamental elements of the international situation.

first benefits

The T-MEC has to do with goods and services. That cross borders and require favorable conditions for their production. Industrial parks are the first link in that chain in Mexico.

Talking about supply chains is fashionable. And countries like Canada, the United States, and Mexico. The evolution of industrial parks after two years. They can achieve an alignment to encourage relocation from manufacturing strategic products such as semiconductors.

This is achieved using available tools such as tariffs. And national content requirements. But above all, supporting the development of a new hardware manufacturing ecosystem in North America. And developing manufacturing capabilities for crucial components. And make efforts to promote sustainable mining and processing of critical minerals. These facilities can be achieved with the Mexican model of industrial parks.

Digital commerce, which has a chapter in the T-MEC. It has seen rapid technological change and evolution. That in recent years has brought a growth in employment. Spaces dedicated to logistics and distribution.

Measure the sector

According to the latest report on the industrial real estate sector. Consulted by the Mexican Association of Industrial Parks (AMPIP). At the end of the second quarter of 2022, an inventory of 45.6 million square meters (m2) is reported with an average vacancy rate of 2.2%. And an average rental price of 5.07 dollars per m2. Likewise, 2.8 million m2 under construction are reported.

These indicators are essential. To measure the performance of the industrial real estate sector. Precisely because knowing the main variables. The evolution of industrial parks after two years. That shows their behavior and growth allowing them to develop the infrastructure. To have new spaces. That houses global companies that generate employment and investment.

Due to the relevance of these indicators. The AMPIP is a business organization. Representing developers, owners, and investors of industrial parks in Mexico. It has been tasked with building the AMPIP Industrial Real Estate Index (IIIA).

This seeks to provide a statistical overview of the behavior of the industrial real estate sector in industrial parks. Considering these variables: inventory in m2, vacancy in m2, and m2 under construction. Rental and sale price (according to the classification of the warehouses or industrial buildings) is the most relevant.

The IIIA was born from needing a reference tool for AMPIP members. The objective is to integrate fundamental indicators. General and representative of the industrial real estate sector under its methodology.

As measured

The methodology was designed from deep analysis and discussed, fed, and endorsed by a group of experts who are the ones who generate this information, the AMPIP partners. These intervene in developing and constructing industrial spaces and are developers, investors, builders, and connoisseurs of the sector.

Therefore, the rules determine the values ​​eligible for inclusion in the index and the formulas by which the index value is calculated. The process for modifying components and a schedule for updates.

Just as the Industrial Parks Standard NMX-R-046-SCFI-2015 establishes the specifications of legal provisions, infrastructure, urbanization, services, and administration, for industrial parks established in Mexico, the IIIA contemplates the minimum specifications developers consider for the development and classification of industrial buildings.

Industrial parks are the ally of competitiveness in Mexico. Because of its strategic geographic location and infrastructure. Therefore, they are the perfect mix for attracting foreign and national investment.

real estate opportunity

Mexico is among the top 10 recipients of FDI worldwide, with 31.6 billion dollars registered in 2021. For example, it is a beautiful country for foreign companies looking for the ideal place to locate their investment.

The location of Mexico and its border of more than 3,300 kilometers with the United States provides immediate connectivity with the largest market in the world. For example, this and the network of free trade agreements. That Mexico has more than 50 countries. They allow the country to have preferential access to many consumers.

Thanks to more than 25 years of integration of Mexico with the productive region of North America. The country has an extensive national network of world-class providers. Linked to global manufacturing chains.

These industrial parks added to the talent. The supply, free trade agreements, and competitive costs. Therefore, they make Mexico a beautiful country for global companies. Who is looking for the ideal place to optimally start new production plants or logistics centers?

International promotion

For this reason, AMPIP is the organization that represents more than 400 industrial parks in the country. More than 3 thousand 700 national and foreign companies operate from more than 40 countries. More than 3 million industry jobs are generated there. Such as automotive, distribution and logistics, metalworking, electronics, plastics, food and beverages, chemicals, construction, pharmaceuticals, paper, textiles, medical devices, and aerospace.

The COVID-19 pandemic made it clear to us the importance of mitigating production risks. And foresee the continuity of supply chains through precise planning. For example, the short distance between suppliers and the quantity and quality of supplies and services. What, in other words, has been called nearshoring.

Mexico is the ideal partner for the nearshoring strategy of foreign companies. And AMPIP is the best ally to make the operation of new companies possible.

Those already established are attracting new investment from suppliers. But in the case of EV brands, we need to look at new market entrants.

The real estate infrastructure, all the focus that Mexico has had in recent years, acquiring proven experience in the automotive sector. Therefore, it makes us think that the interaction with the industrial real estate market will come from the new brands. Who do not have inherited properties and are looking for different automation conditions. Connectivity and locations allow them to drive their entry into the market.

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