What elements to consider when locating an industrial building?
If you are looking for an industrial building in Mexico, you should be aware that there is a significant offer on the demand of companies that use this type of space. It is estimated that at the end of the third quarter of 2021, the construction of these projects exceeded 3.3 million m² throughout the country.
However, given the heavy investment of buying or leasing, it is essential to know how to choose it. The most important thing is the building’s connectivity and location since they are spaces where you can perform activities, assembly, storage, and distribution, among other fundamental processes in the supply chain.
In addition, if you consider that Mexico’s seaports are of great logistical importance globally and that the country borders the United States (an international trade power), then the industrial building’s location is key at a strategic level and can be a decisive factor in the success of a company’s growth.
To determine the location in strategic points that facilitate all workflows, you should evaluate the following aspects:
Product type and quantity
You must analyze this point in terms of:
- Product durability: this helps establish the building’s location in front of the consumption points. It is not the same to warehouse motorcycle parts that will be distributed throughout the country as it is to store perishable food that goes to Mexico City.
- Intrinsic stability: the unique conditions that may affect its transportation and the safety of workers and the surrounding population.
- Usability: determines the number of movements you can make with the product and, therefore, the location and number of places where it can be deposited.
Furthermore, you must take into account the amount of product to store and the inventory cycles, which are closely linked to manufacturing capacity and the transformation’s level.
Costs
Here you must assess how much it will cost you to have the industrial building in specific strategic locations. You need to consider variables such as infrastructure, labor, transportation, nearby Mexican seaports, along with other costs, like additional services and insurance that you must hire for the operation.
The demand and key distribution network
You analyze the target audience’s number and location, the volume of purchase orders, the demand curve, the required delivery times, and the relative relevance of proximity.Here the building’s connectivity begins to play a decisive role since the specific network’s characteristics, required to realize the products onto the market, influence their location and type.
The competence
It is also important to consider the location of competitors’ industrial buildings, focusing on factors such as their efficiency and service. In some cases, it is wise to be in the same location, while in others, it is better to seek a competitive edge by locating elsewhere.
Otherwise, when choosing an industrial building, you should bear in mind that:
- The safety elements’ installation, which of course, must be aligned with the legislation, activities, and risk level that you will carry out in its different spaces.
- The type of construction material of the industrial building, i.e., the structural objectives with which it was designed to meet the needs of the activity to be performed.
At Advance Real Estate, you can find industrial spaces in the country’s main zones, as Nuevo León, Jalisco, Querétaro, Guanajuato, Coahuila, or the State of Mexico, with projects that have all the necessary infrastructure to run a company’s operations successfully.
Information source:
- t21.com.mx/logistica/…/se-construyen-mas-33-millones-m2-naves-industriales-mexico
- t21.com.mx/logistica/…/monterrey-cdmx-tijuana-concentran-60-demanda-inmobiliaria-industrial
