Discover how Meor’s groundbreaking $1.7 billion investment in industrial development along the US-Mexico border is reshaping the landscape of nearshoring and trade dynamics. Learn about their strategic plans and key projects in Tijuana, Monterrey, and beyond.

Meor Plans $1.7 Billion Industrial Development Portfolio on US-Mexico Border

As nearshoring continues to attract manufacturers to prime locations in Mexico, real estate firm Meor is making a significant investment in the development of industrial space along the border.

Meor, based in Mexico City, has announced plans to develop a multiphase portfolio of 13 industrial projects totaling over 18 million square feet. The company has engaged Cushman & Wakefield, a global real estate services firm, to assist in securing equity partners for the $1.7 billion project.

“The Mexico industrial market has experienced unprecedented growth in recent years driven by both the headlining tailwinds of nearshoring and the exponential growth of e-commerce,” said Ernesto Sanchez, Cushman & Wakefield’s vice president of institutional equity, debt, and structured finance. “This is a robust industrial development portfolio of best-in-class industrial parks that will be strategically positioned in several of Mexico’s strongest industrial markets to service both existing, expanding users, and new entrants alike.”

Mexico has emerged as the top overall U.S. trading partner, with bilateral trade reaching $798 billion in 2023. This growth has been fueled by increased exports of gasoline and other fuels, as well as imports of passenger vehicles.

According to Meor, the vacancy rate for industrial space in key Mexican locations along the border is hovering around 1%, indicating strong demand and limited availability.

Meor is seeking initial investment partners to contribute $300 million towards the development of a 5.7 million-square-foot industrial park in Tijuana, Mexico.

The Tijuana industrial park will be a five-phase project constructed on the “last land-site of scale in proper Tijuana,” according to Cushman & Wakefield. The project is expected to have a total capitalization of nearly $700 million upon completion.

Tijuana, the largest city in the Mexican state of Baja California, is strategically located across the border from San Diego, California, and has a population of approximately 2.3 million.

Foreign companies seeking to diversify their supply chains have increasingly turned to Mexican border states in recent years. The Cali-Baja mega-region, encompassing Southern California and northern Baja California, has emerged as a major beneficiary of these evolving global trade flows.

From January through September 2023, Baja California attracted $1.1 billion in foreign direct investment, accounting for 3.6% of the national total. This placed the state ninth among Mexico’s 32 states in terms of foreign direct investment.

Baja California is home to over 950 maquiladora factories, of which 621 are located in Tijuana. Maquiladoras are factories in Mexico operated by foreign companies that export their products back to the country of origin.

In addition to Tijuana, Meor plans to develop industrial parks in Monterrey, Mexico, approximately 135 miles south of Laredo, Texas. Following the initial phase of developments in Tijuana and Monterrey, the company aims to expand into Ciudad Juarez, Guadalajara, Mexicali, and Torreon.

Ciudad Juarez, situated across the border from El Paso, Texas, is expected to host the largest single project, accounting for approximately 37% of the total 18.3 million-square-foot portfolio.

“This is a very special opportunity for a U.S. capital partner/investor to establish a long-term, programmatic relationship with Meor, a premier developer with deep ties to the highly competitive and relationship-driven Mexico market,” said Sanchez.