Reasons behind the rise of industrial spaces in Mexico City
Just like Mexico’s northern region, the capital has seen higher demand for industrial spaces after the end of the pandemic was announced. The reason why is linked to a series of changes in international trade, offering a real chance for the economy to grow.
The data shown by Solili1 Industrial Report 3Q 2022 indicated that gross demand for industrial spaces in Mexico City was close to 22 million sqft., a growth of 11% from the total reported in the third quarter of 2021. With a demand exceeding 6,458,346 sqft.2, the capital city led the national real estate market during that same period.
What is driving the increase in industrial space in Mexico City?
The major factors of today’s demand for spaces located in industrial zones, whether it is in Mexico City or other regions of the country, are the following:
1. Digital commerce boom
Although consumers’ preferences for e-commerce were noticeable in the last decade, the COVID-19 crisis, the U.S-China trade dispute, and the war between Russia and Ukraine have triggered the consolidation of this trend worldwide, as well as the supply chains in the region. This resulted in companies needing more industrial spaces and warehouses.
2. Relocation for logistics chains
As Asian manufacturing saw raising costs and tariffs, many companies relocated their operations to countries closer to their export markets. They found advantageous locations in Mexico with higher infrastructure availability to run their operations satisfactorily.
3. Raw materials outsourcing
Manufacturing and storing products in a Mexican industrial park or warehouse is a great alternative. It brings benefits such as better access to raw materials, energy sources, and connectivity, ending with more efficient processes and reducing costs of those companies installing in any industrial zone of Mexico City.
4. Privileged location for logistics operations
In the third quarter of 2022, 77 industrial buildings began2 construction, leading to the real estate sector’s activity outperforming the progress experienced during 2021.
Under these conditions, the country saw how industrial spaces rocketed to more than 12 million sqft., meaning a quarterly growth of close to 2%, driven by Monterrey, Queretaro, Guanajuato, and the capital city. Mexico City and the Bajio industrial zone ended up being one of the most searched locations by companies for distribution centers and industrial warehouses.
Advance Real Estate offers various industrial space options for logistics and manufacturing operations. We provide every company with a customized industrial space or project based on their needs in strategic locations.
INFORMATION SOURCE
- www.solili.mx/noticias/…/5324
- inmobiliare.com/cdmx-lider-en-demanda-de-espacios-industriales-a-nivel-nacional
- www.eleconomista.com.mx/estados/Aumenta-demanda-de-espacios-industriales-en-Ciudad-de-Mexicoy-urbes-del-norte-20220427-0148.html
- advance-realestate.com/adblog/centro-de-distribucion-3-nuevas-tendencias
