Industrial vacancy becomes an important indicator of those markets where demand far exceeds existing or in-process supply.

Some of these markets exhibit works in progress where speculative options are combined with custom built options (BTS). 

The latter would become occupied once they are completed and will form part of the inventory, with the speculative options being the ships that will be available together with the ships that are vacated in the period.

At the end of April 2022, the lowest vacancy occurred in Tijuana with 0.45%, followed by Tecate and Guadalajara with 0.56% and 1.27%, respectively. Other entities whose levels have adjusted sharply downwards are Ciudad Juárez and Mexicali, which show 1.5% and 1.56%, respectively.

Now, in absolute terms, the largest vacancies are concentrated in Mexico City and  Monterrey with 500 and 336 thousand square meters, respectively, as Solili monitors on its platform at the end of April 2022. These amounts represent 3.0% and 2.5% of their inventories, respectively.

Check here: Tijuana reports the highest industrial rental prices in the country

In the case of Mexico City, the market with the largest inventory nationwide, there has been a significant downward adjustment that in January 2021 reached the maximum level of 5.6%, falling by 2.6 percentage points in just one year.

Another important abrupt decrease in vacancy is located in Monterrey, which in just one year went from registering 6.1% in February 2021 to 2.5% in April 2022, which shows the strong demand that this market has experienced.

But perhaps the market with the greatest downward adjustment is Guadalajara, which went from 6.4% to 1.27% if we compare the month of February of the years 2021 and 2022, the same indicator that even falls further to 0.56% at the end of March 2022.

We must also analyze that these indicators represent the average of the markets, on the basis that the most requested brokers reflected values even lower than those previously indicated.

The industrial vacancy at the national level reports a figure of less than 3%, achieving with this the historically lowest levels reported. In the last year alone the number of vacant spaces has decreased by almost half. This should be an incentive for developers to start new speculative projects.

Of interest: Mack Technologies inaugurates an industrial warehouse in Ciudad Juárez

We know that there is still a lot of uncertainty for developers when it comes to tilting the balance towards the development of speculative projects, since the risk of various internal factors of the Mexican economy weighs at the time of decision.

But the most dynamic markets demonstrated their strength throughout 2021, even in the midst of the strong inflation that is being experienced, so cost planning, timely completion of the work and in-depth knowledge of the real estate product that is in demand, pass to be the key factors that will give competitive advantages to the most qualified developers.

At Solili we already have indicators at the end of April 2022 where you can consult and analyze all these markets knowing in detail what the minimum vacancy levels are by corridor, based on the history of the last 4 years, which allows you to make decisions based on that how gross and net industrial absorption moves in the main Mexican markets.