The average growth of the industrial real estate inventory in Mexico reached just over 5% in a market strengthened in the face of the crisis, standing out for its competitiveness and dynamism in the main cities of the country, Solili highlighted.

In relative terms, the markets of Guadalajara, Mexicali, Saltillo y Querétaro registered the highest annual increases in inventories between 7 and 10 percent. In absolute terms, the Metropolitan Zones of Mexico City and Monterrey are ahead.

Regarding prices, the trend was that most markets reported increases, mostly influenced by the pressure generated by low availability rates, the increase in the prices of construction materials, as well as the need to generate spaces with more and more technology and quality in construction, which implies higher cost increases for developers.

With elements such as the shortage of available spaces in some markets, the impulse that recovered demand during the year and the increase in tailor-made projects, construction in the country has had a significant rebound, closing 2021 with a total of 3.7 million square meters.

At the forefront of construction activity, Monterrey remains with 935 thousand m2 that are progressing in various phases, followed by Ciudad de México y Tijuana with 742 and 435 thousand m2, respectively.

The country's industrial market closes with growing inventories, healthy vacancy figures, prices with an upward trend, the same case as construction.

Check here: 2021: Atypical year that left historic industrial space demands

On the demand side, the indicator continues to show historical levels in some markets and at the end of 2021 the total annual figure for the country is 6.6 million m2, which represents almost 70% more than what was demanded in 2020. Monterrey became the leader at the national level, displacing Mexico City to second place.

The incorporation of cutting-edge production techniques in multiple sectors led manufacturing to new demands on the physical infrastructure, which prompted the construction of tailor-made or BTS projects nationwide.

The relocation of production processes that temporarily harmed Asia favored countries like Mexico, which had the ideal location as a neighbor of the United States, where a sustained demand for goods and services is concentrated, driven by the fiscal and investment stimuli launched to reactivate their economy and that historically they have permeated into the country.

Consolidating the base of regional suppliers was the pivot in companies on the northern border and the Bajío, which reduced vacancies considerably with the largest contractions in Puebla, Monterrey y Ciudad Juárez with downward adjustments of more than 2.5 percentage points, compared to the 4Q21 with the same period of the previous year.

Logistics also showed a very favorable end of the year for Mexican developers where technological incorporation prevails in large storage areas that were installed in Mexico City, Guadalajara and Tijuana, seat of new distribution centers that exceed 50 thousand m2, the great most of them also about the made-to-order format.

The trend will continue towards a globalized world dependent on technology with increasingly informed customers and that will advance in quality and immediacy requirements for the delivery of its products.

In this year that is just beginning, the uncertainty of the pandemic will continue to condition the impulse of the industrial sector where the country's advantages are reinforced by having modern infrastructure, with qualified labor at competitive prices, according to Solili.

Of interest: Guadalajara reported a significant increase in demand in 2021

Although perhaps the most important thing is represented in the institutional ecosystem and the maturity of an economic sector of developers and investment instruments that favor open competition to scale industrial portfolios to the next level.

Key risk factors such as the rapid increase in the prices of raw materials that underpin exports, the shortage of some inputs such as semiconductors and the way the government handles the energy issue will allow or not to consolidate the value chains in Mexico, allowing that the country has safer suppliers with guaranteed delivery capacity on time.

Most production processes will continue to migrate towards sustainability and the reduction of the carbon footprint, a change that industrial spaces emulate and where there will be great changes during 2022 in relation to industrial design.

It is also expected that the marked competition that occurred in 2021 will be sustained throughout the year, so we will see multiple purchase and sale operations among the main industrial portfolios, the report concludes.

In Solili you can consult industrial warehouses available in Guanajuato, Tecate and San Luis Potosí

Original note