In the first half of 2017, 33 transactions were recorded in Guanajuato

 

Nationwide, Guanajuato was the market with the highest absorption during the first half of 2017, accounting for 33 transactions, giving a gross absorption of 4.14 million square feet, Mexico Industry, Marcos Alvarez, national director of Market Intelligence in NAI Mexico.

 

According to the manager, the main clients installed in Guanajuato during the first half of 2017 were Kromberg & Schubert, Pirelli and UGN. Also noteworthy are UMC Electronics, Mino Industry and Demotechnic.

 

He explained that 8 % of the transactions are of Class A and Class B inventory ships, 79 % of closures are BTS and 13 % of expansions.

 

“This is derived by the automotive manufacturers that were installed in the Bajio and that they are bringing their suppliers,” Alvarez said.

 

In addition, he pointed out that from the 4.14 million square feet, 19 % of the transactions were in leasing and 81 % in sale.

 

The specialist reported that the size of the industrial market in Guanajuato grew 15 % during the first six months of the year, compared to the second half of 2016.

 

Currently, the size of the industrial market in Guanajuato is 28.95 million square feet, giving a vacancy of 9.23 %. The main submarket with greater availability is Leon with 41 %.

 

He said that Silao was the submarket with the highest absorption in the first half, 13 transactions were recorded giving 1.98 million square feet. 95 % of the transactions made in Silao were BTS.

 

With 18 %, Leon is the submarket that follows in larger absorption, with seven transactions.

 

IN DETAIL

Regarding the origin of investments, the country that has brought the most industry to Guanajuato is Japan, followed by the United States, Germany, Italy and Austria.

The industrial sector with the largest presence is the manufacturing sector, with 98 % of the market.

Meanwhile, the specialist reported that the automotive sector had the highest percentage of absorption, with 67 %, this means, the installation of 20 companies.

 

NAI Mexico's national market intelligence director explained that Guanajuato has 28 Class A and Class B spaces available, giving a total of 2.61 million square feet.

Of these, 2.50 million square feet are Class A and 106,986 square feet are Class B buildings.

 

“Silao is the submarket with the highest availability of Class A and B buildings with (46 %) 1.17 million square feet, the next sub-market with the highest availability of Class A and B buildings is Celaya, with 547,911 square feet,” he said.

 

He added that Guanajuato has four buildings under construction for inventory industrial buildings, giving a total of 502,761 square feet and detailed that Salamanca is the submarket with 75 % of the market of buildings under construction.

 

NATIONAL PANORAMA

Marcos Alvarez, National Director of NAI Mexico's Market Intelligence said that due to global economic conditions, during the first half of 2017, Mexico presented a 25 % difference in absorption compared to the first six months of 2016.

 

“The size of Mexico's industrial market grew 14.3 %, compared to the first half of 2016; now the size of Mexico's industrial market is 530.69 million square feet giving a vacancy of 5.29 %.”

 

He reported that the main submarkets are Monterrey with 19 % and Mexico City with 16 %; this is because those are the two main cities with greater availability and absorption of the country.

 

He said that in the first half of 2017, 165 transactions were recorded throughout Mexico, giving a gross absorption of 17.09 million square feet, 50 % of the transactions are Class A and Class B inventory ships, 43 % of the closures are from BTS and 7 % from expansions.

 

Of the 17.09 million square feet, 70 % of the transactions were for rent and 30 % for sale.

 

He emphasized that Guanajuato was the market with the highest absorption in the first semester with 33 transactions. The markets that follow in Mexico were Monterrey and Mexico City, with 16 %.

 

“The industry with the largest presence in Mexico is the automotive sector, accounting for 34 % of the market and registering 58 transactions in 10 sub-markets, mainly in Guanajuato and Saltillo,” Alvarez said.

 

LEADER IN INVESTMENT ATTRACTION

According to data from the Ministry of Sustainable Economic Development of Guanajuato (SDES, by its Spanish initials,) since 2012 to date has a record higher than the 11 billion of dollars of investment attraction in Guanajuato.

 

The majority of investments are in the State Industrial Corridor; however, there are municipalities that also generated industrial development opportunities such as San Francisco del Rincon, Santiago Valley, Abasolo, San Miguel de Allende, San Felipe and Comonfort.

 

Although in the beginning they received an approximate of 2,500 hectares for spaces where the companies could be installed; by the end of next year, they will deliver more than 2,700 additional.

 

Guillermo Romero Pacheco, head of the SDES, explained that he is giving the opportunity to municipalities that also want to be included in this industrial growth.

He emphasized that most companies have their own infrastructure and that only few companies rent an industrial warehouse according to their fiscal and financial strategy.

 

“When it is a very large investment, it is almost certain that they build their own factory, especially because of the specialization, not only an architectural whim, but also a logistics and personnel need.”

 

Although he said that this year has been complex due to the change of power in the United States - main commercial customer - Guanajuato is among the first places in the Quarterly Indicator of Economic Activity by Entity.

 

He affirmed that the industry demands many qualified people and that in the State can be covered that request by the installed companies.

 

“Guanajuato is one of the biggest states of the Bajio, but what the industry is asking for today is the human resource for a great diversity of sectors that continue to demand people.”

 

The automotive and auto parts industry continues to have export growth of almost 20 %; while in the second place is agroindustry, where the entity has a great strength offering both primary and manufacturing products.

 

“These two sectors stand out because they have an unusual growth, where there have been spectacular leaps. These types of indicators are not commonly seen, but it is important to highlight them at the moment,” he said.

 

GENERATION OF NEW BUSINESS

Developer Marabis is a construction and developer company of Industrial Parks in Guanajuato.  Currently it has three industrial complexes in the State: Castro del Rio Tecnoindustrial Park (Irapuato,) Marabis Abasolo and Marabis Comonfort.

 

According to Vanessa Cordero, the company's CEO, a total of 84 companies - mainly the automotive sector - are in the three parks, of which 42 are Japanese, 13 are German, 13 are Mexican and the rest belong to different nationalities.

“Of the total number of Japanese companies in Guanajuato, we serve about a third; of the total number of German companies in the State, we serve 50 %,” he said.

 

He announced that this semester closed with four new companies, plus the expansion operations of other plants that are already installed inside the Castro del Rio Park.

 

He added that the investment that is established is growing and is not stopping: “These are companies that have growth plans since they arrived and continue with them; this is what is generating much internal dynamism and is an important indicator.”

 

The director said that currently have in the portfolio between 35 and 40 companies that are interested in installing in Guanajuato.

 

"The portfolio of prospects and customers continues to be mainly from Japanese, German, American and Chinese companies."

 

He emphasized that it is not that these companies are closing plants in other places, but are generating new businesses. Therefore, he sustained that the internal perspective remains positive.

 

Vanessa Cordero said that companies that decide to settle in an industrial park do so by factors such as: legal certainty, infrastructure platform and labor. In addition, the geographic location and work of the state government has been characterized by continuing the plans to attract investment and the generation of infrastructure and human capital.

 

“The availability of labor is fundamental for the growth and development of the industry. For this reason, both the private initiative and the government are turning all efforts to education. We have been strongly encouraged for several years the Dual Education program,” he added.

 

Finally, he considered that all these characteristics, the coordinated work from private initiative, government and academy had made Guanajuato an attractive State for the arrival of new investments and for the growth of the already stablished businesses.

 

REPRESENTATIVE TRANSACTIONS IN GUANAJUATO

(First semester 2017)

 

TENANT

CLASS

TYPE

SIZE(SF)

INDUSTRY

COUNTRY

Kromberg & Schubert

A

BTS

430,560

Automotive

Germany

Pirelli

A

BTS-EXP

405,243

Automotive

Italy

UGN

A

BTS

279,960

Automotive

United States

Nissen Chemic

A

BTS

279,332

Plastic

Japan

Summit Plastics

A

BTS

214,543

Plastic

United States

UMC Electronics

A

BTS

196,647

Electricity and Electronics

Japan

Source: NAI Mexico.