One of the most determining indicators of investment confidence is construction. When there is the necessary demand and the economic conditions allow us to anticipate that if something is built today within the scenario of costs and planned times at the end or before, we will be facing the possibility of a successful operation in terms of profitability for the developer.

Sometimes industrial markets are faced with either low vacancy or supply that does not meet certain elements of demand. In this case, the plaintiff of the ship agrees with a developer to build it under criteria that meet the needs of its production and it is built under the concept of made-to-measure or BTS.

Other times the conditions favor developers taking risks under the speculative modality where they build at their risk with a view to placing their properties at better prices once they go on the market and there is greater demand than supply.

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At the end of 3Q 2022, industrial construction in the country exceeded 5.3 million square meters, 60% more than what was built the previous year in the same period. If we analyze the regional distribution, we could see that the northern markets concentrate 64%, while the lowlands manage to group 22%, leaving the rest distributed between Ciudad de México, Puebla and Guadalajara.

At the national level, there continues to be a significant predominance of custom-made constructions during 3Q 2022, as is the case of Monterrey with 73%, Reynosa with 77% and Querétaro with 48%, to name a few markets.

Contrary to this trend, Tijuana shows a little more than 90% of speculative constructions in the third quarter of 2022, but let us remember that this market registered a vacancy rate of 0.4% at the quarterly close, one of the lowest nationwide.

Check here: Construction and demand are concentrated in the South corridor of Ciudad Juárez

Another element is the size and if we evaluate the maximum area of the warehouse that is built in each entity, Monterrey takes the lead with a warehouse of 148 thousand square meters, while Saltillo, Querétaro and Reynosa place their maximum area around 50 thousand square meters, where all of them correspond to projects made to measure.

In the midst of a scenario like the current one where inflation has reached considerable levels, the expertise to undertake the works in time and cost is vital to carry out the project according to what is established.

The developer's ability to have construction inputs and land with additional infrastructure as well as the speed of solving problems such as adequate electricity and water supply are the key to successfully completing his industrial project. Here the best developers and builders manage to differentiate themselves and get the best portion of industrial demand.