By analyzing different aspects of the segment, such as the sustained growth in demand, the dynamism in industrial portfolios, new investment coverage during the year, modernization, adjustments and new international industrial demand, the Mexican industrial Real Estate market will close 2021 with an excellent performance.

In this sense, the gross national industrial demand from January to October was more than 5.3 million square meters, sustained mainly by the manufacturing sector concentrated in northern and Bajío entities, and the logistics segment that has been the pivot in the México City, Guadalajara and Querétaro.

“The same crisis that induced the pandemic has led to mobilizing the market in an interesting way for developers and investors who not only ordered their issues of access to their sources of financing, improving their credit profile under excellent interest rates, but also focused on detect their strengths, which led them to reorganize their portfolios ”, highlights a year-end analysis by Solili for the segment.

Of interest: Tijuana in the face of opportunities in the face of global demand

Other groups chose to expand into new markets, achieving interesting associations with foreign capital that provided financial muscle, while the national component had precise knowledge of the changes that companies were demanding in the country.

Others concentrated on expanding their logistics networks not only in city peripheries, but also swept the last-mile markets to gain key spaces to offer the entire logistics industrial client the entire distribution warehouse scheme.

Obviously the large logistics agents such as Amazon and Mercado Libre, among others, agreed with the main developers such as Vesta, Prologis and Parks to design and build the buildings adapted to their needs with the advantage of being able to deduct the rent from taxes, under the agreement of a (BTS) or Build to Suit ”or also known as“ custom construction ”, adds Solili.

This type of tenant guarantees the developer an accurate forecast of their future and expected growth, generating a win-win agreement.

In terms of exit, these properties, which take nine months to build on average, allow reducing financial risks such as inflation, by agreeing before the start of work on the purchase of the main inputs.

More and more industrial tenants want to concentrate their capital in the operation of their companies, while the developer insures both the capital and the debt of the project.

Check here: Industrial developers benefited from the boom in built to rent in Mexico

“With this separation of functions and the incentives aligned for tenants and developers, based on the existing legal framework, the industrial real estate activity has matured to become a highly institutional sector that is strengthened by the strong competition to meet the needs of potential tenants ”,

Finally, the real estate analysis platform Solili added that the modernization and adaptation of the spaces in accordance with the new standards of environment, sustainability and governance, will be another attractive differentiating element to capture demand.

In Solili you can check industrial warehouses available in Ciudad Juárez and Saltillo

Original note