Hermosillo, Sonora, Mexico, stands as a beacon for offshore investment in the manufacturing sector, offering a strategic location, competitive lease rates, and a thriving industrial ecosystem. As companies seek to optimize their manufacturing operations and tap into new markets, Hermosillo's appeal as an offshore investment destination continues to grow.
With its established reputation as a manufacturing powerhouse, particularly in automotive, aerospace, and electronics sectors, Hermosillo attracts foreign direct investment from around the globe. The city's proximity to the United States, combined with its robust infrastructure and supportive business environment, positions it as a premier choice for companies looking to establish or expand their offshore operations.
While this reputation and excellent location drive up demand for industrial real estate, the city also offers competitive leasing rates compared to much of Mexico. Below, we'll explain who is manufacturing in Hermosillo, Sonora, Mexico, how much you can expect to pay for commercial space compared to other areas, and all of the features you can expect to find in the local real estate market.
Advantages of Manufacturing in Hermosillo
Hermosillo, Sonora, Mexico, is perhaps best known for its roots in the automotive industry. The Ford Stamping and Assembly plant established here in 1986 has served as a magnet for many automotive suppliers. In 2020, Sonora exported USD $809 million in motor vehicle parts and accessories. That has, in turn, catapulted investment in infrastructure that has attracted far more manufacturing sectors to the area.
Sonora has become one of the fastest-growing aerospace industry clusters in Mexico, with companies including Boeing collaborator Latecoere Hermosillo and turbine manufacturer AT Engine Mexico located in Hermosillo. Medical device manufacturing and electronics production also have a strong presence in the city.
This manufacturing strength is why Sonora is one of Mexico's wealthiest states and the 9th most significant contributor to Mexico's economic growth based on GDP. Foreign direct investment in Hermosillo has grown as more companies discover the advantages the region has to offer.
Of course, many of these manufacturers factor in the quality of life when considering a location in Hermosillo. Hermosillo, Mexico, is deemed safe, welcoming to visitors and families, and home to many cultural attractions. Hermosillo is also a gateway to several coastal resorts.
Industrial Lease Rates in Hermosillo, Sonora
The average monthly lease rate for industrial real estate in Hermosillo averages around USD $0.62 per square foot. Nationally, industrial real estate rates tend to average from USD $0.58 to $0.80 per square foot. However, compared to the average cost of around $.95 per square foot that manufacturers might pay in the United States (and as high as $1.58 per square foot in areas like New York), it's easy to see the potential cost savings of operating in Mexico.
Moreover, it is critical to factor in the features, services, and amenities included with industrial real estate in Hermosillo, Mexico, to ensure that you're getting the best return on your investment.
What is included in lease rates for industrial space in Sonora?
Industrial real estate features will range depending on the specific facility, so it is essential to tour facilities before committing to a lease or buy.
Facilities within an industrial park will likely have the infrastructure in place to support manufacturing demands. However, Manufacturing Communities offer much more. These industrial spaces offer a range of amenities meant to attract a skilled workforce and assist manufacturers in their operations. For example, the Rio Sonora Manufacturing Community in Hermosillo offers ready-to-lease and build-to-suit space, utilities, and security systems with controlled access and CCTV.
More notably, the Rio Sonora Manufacturing Community in Hermosillo also provides manufacturers with access to a range of support services. On-site services include human resources, accounting, facilities management, EHS, and administrative assistance, among other on-site aid.
Wherever you rent, it's essential to do your due diligence and identify any potential restrictions or special rules upfront. Ask lessors what is included in facility maintenance and determine what other tenants may be paying in terms of relevant utilities. If elements such as sewer and water costs, electrical demand arrangements with the local power company, and insurance are included in the lease, be sure to have the lessor break out the costs of these services.
What to know before leasing manufacturing space in Hermosillo
While the costs of industrial real estate in Mexico may make it tempting to jump all in, it's highly recommended to tour properties before you commit. It is also advisable to consider having more than one real estate broker show you facilities, as this can help ensure you get the complete picture of local real estate options. Consider this your opportunity to ask questions of the lessors and other tenants, examine your landlord's other properties, and explore the potential for future expansion.
To ensure you get the best real estate deal in Hermosillo for your manufacturing needs, it will help to work with an experienced partner. Tetakawi has provided shelter services and connected manufacturers with Class A industrial real estate in Mexico for more than 35 years. Contact us today if you're ready to simplify your search for the right manufacturing site.
Thinking about manufacturing in Mexico? Download this ebook and start moving your due diligence forward.
