At the end of the first quarter of 2019, the industrial market reacted with confidence before the new challenges implied by the beginning of a new federal administration and the performance of Mexico's internal demand and our main commercial partner, the United States.
In this sense, according to data from the Solili platform, the indicators of the actual industrial estate market for the cities of Mexico, Guadalajara, Monterrey, and Tijuana reported positive behavior, with sustained demand in most of the markets, healthy availability rates, stable prices and activity of an upward construction.
In the industrial real estate market of the Metropolitan area of Mexico City (ZMCM, by its Spanish initials) reported the vacancy rate of 3.4 %, specifically in the warehouse typified as class A, of which 50 % of the total concentrates it in the Tepotzotlan corridor.
The average in leasing pricing in the ZMCM for class A spaces was of 5.33 USD/m2/month, reporting a rebound of 35 cents of dollar regarding the previous quarter. The low availability pointed out by the market and the dynamism the absorption had during the first quarter of the year made developers choosing to slightly increase prices.
Marcos Alvarez, business intelligence director of market Analysis, in industrial space commercialization issues, during this first quarter of the year a total of 232,463 m2 were leased, reporting similar figures of the first quarter of the previous year. “The corridors with the highest activity were Tepotzotlan with more than 50 % of the total and Cuautitlan with 62 thousand meters leased. The dynamism this corridors report is because here concentrates the highest availability and larger-scale projects,” he noted.
MEXICO’S NATIONAL SUMMARY OF THE THIRD QUARTER OF 2019
Owed to the economic conditions worldwide the third quarter of 2019 shows a difference of 25 % in absorption in the country.
The size of the industrial market in Mexico as country grew a 14.30 % more comparing it with the third quarter of 2016, currently the size of the industrial market in Mexico is of 580.74 million square feet resulting on a vacancy of 3.96 %, the main submarket with the largest size of Mexico’s industrial market is: Monterrey with 19 % and Mexico City with 16 %, this is because those are the main cities with the highest availability and absorption in the country.
“During the third quarter of 2019 were accounted 107 transactions in all Mexico giving a gross absorption of 20.19 million square feet, 65 % of transactions are of class A and class b inventory industrial buildings, 23 % of the closures are of BTS and 12 % of expansions,” said Marcos Alvarez.
Likewise, of the 20.19 million square feet, 91 % of transactions were on lease and 9 % on sale.
Monterrey was the market with the highest absorption of the third quarter of 2019 were account for 53 transactions, resulting in 5.96 million square feet. 68 % of transactions done in Monterrey were of inventory industrial buildings. This derived from the workforce specialized in the automotive sector. The main customers installed in the third quarter of 2019 were K-Flex, Navistar and Jabil.
Mexico City is the industrial market with the largest distribution centers in the country with customers like Walmart, XPO, Alpura, as its main customers in the third quarter of 2017, Navistar, Rexnord, Martahon Electric settled their expansions in Monterrey.
SUMMARY MEXICO CITY THIRD QUARTER 2019
Marcos Alvarez, explained that the industrial market size of Mexico-Toluca grew a 1.08 % more compared with the third quarter of 2019 currently Mexico’s industrial market size is of 85.96 million square feet resulting on a Vacancy of 4.64 %, the main submarket with the largest size, Tepotzotlan, with 64 % as the submarket with the highest availability and absorption of Mexico-Toluca.
During the third quarter of 2019 in Mexico-Toluca were accounted for 30 transactions resulting in a gross absorption of 5.60 million square feet, 87 % of transactions are of class A and class B inventory industrial buildings, 13 % of the closings are BTS.
Of the 5.60 million square feet 100 % of transactions were on the lease.
“Tepotzotlan was the submarket with the highest absorption of the third quarter, seven transactions were accounted resulting in 3.07 million square feet, and 100 % of transactions fulfilled in Tultitlan were in inventory buildings with 48 % of transactions. This resulted because distribution centers are looking for first-generation buildings. The main customers settled in Mexico-Toluca in the third quarter of 2019 were Walmart, Alpura, Sodisa,” ended the directive.
The submarket that follows with the highest absorption in Mexico-Toluca is the Cuautitlan submarket with 33 % of the market.
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