In the industrial real estate market of Mexico City, 640,000 square meters of industrial warehouse projects are advancing in execution, an amount 25% higher than what was built a year ago, according to figures reported by Solili at the end of November 2022.

In the months of November and October 2022 alone, nearly 150,000 square meters of new projects began in the capital of the country.

The traditional submarkets of Cuautitlán, Toluca y Tultitlán at the end of 3Q 2022 grouped 80% of the projects under construction. The Ixtapaluca submarket also advanced with 78,000 square meters of new works, a relevant figure that would add an additional 30% to the inventory of this submarket, once completed.

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The boost in gross demand in the country's capital throughout 2022 already reaches 1.4 million square meters, between January and November 2022, and is the trigger for developers to speed up the march by locating land with infrastructure that allows them to build new industrial projects.

Another of the options that have been observed during 2022 has been the conversion of old industrial spaces that were already undergoing functional obsolescence and that could take advantage of a second opportunity under this modality.

Vallejo represents the best example of conversion, being a traditional industrial submarket located to the north of the city and where government support has been key to promoting the installation of companies focused on manufacturing.

Another focus developed in this submarket is the installation of companies dedicated to the maintenance of infrastructure works such as the installation of the Austrian company Doppelmayr that provides the cable cars to Mexico City and that seeks to locate its spare parts center for all of Latin America in Vallejo.

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Companies such as Netflix, Amazon, Mercado Libre, O'Donnell and Fedex are also betting on the area that benefits from the Vallejo-i Project Development Plan promoted by the Mayor of Azcapotzalco and the government of Mexico City.

Specifically, O'Donnell announced at the beginning of December the acquisition of land and some buildings in Mexico City, investing 116.28 million dollars in a property with 91,000 square meters of rentable area, located in the Gustavo A. Madero and called O'Donnell Vallejo.

This same company maintains its commitment to the conversion of other non-traditional last-mile submarkets and explores new locations, such as Coyoacán, in view of the 2023 plans.

In summary, the metropolitan area of Mexico City will continue to attract investments throughout 2023 due to the boom in recent years due to the reconfiguration of supply chains, which will allow it to strengthen its logistics profile as a benchmark at the national level.