Ciudad Juárez, located in the north of Mexico and adjacent to the American city of El Paso, has been showing an important transformation in regards to its industrial inventory, which has increased by 12% in the last two years.

At the end of Q3 2021, the inventory of Class A warehouses in this market represented 52% and at the end of September 2023 it had gained 5 percentage points, creating a broader supply profile in terms of surfaces and quality of industrial buildings.

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In the last semester, this market is one of the few nationwide that has achieved a significant recovery in its vacancy, taking it from 0.1% in April 2023 to 2.7% at the end of September 2023. At the same time, it continues to maintain a strong construction pace where 427 thousand square meters of industrial warehouses are advancing and of which 72% are located in the South submarket.

Of the twenty warehouses being built in Ciudad Juárez, almost all correspond to speculative projects, which has been key in the recovery of vacancy. If, on the other hand, we look at rental prices, the annual increase registers 11.5%, which would have been sustained by the low vacancy levels, presented at the beginning of 2023.

The current supply of available warehouses ranges from 4 thousand to 35.8 thousand square meters, of which the vast majority are class A buildings and total more than 290 thousand square meters, where there are various developers so we could anticipate significant competition to close agreements via some adjustment in the rental price.

The Ministry of Finance and Public Credit (SHCP) in statements made at the beginning of September indicated that the investments that came to the north of the country in markets such as Monterrey, Ciudad Juárez and Tijuana had influenced the construction of industrial warehouses due to the shortage of spaces. that the area recorded in mid-2023.

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Relocation trends have impacted northern markets in the earliest stages, which, given the scenario of low availability of industrial warehouses and the increase in rental prices, have worked as market signals to stimulate an increase in construction, commented by SHCP.