The Mexican industrial real estate market will close 2021 with an excellent performance if we analyze it from different aspects, such as the sustained growth of demand, the dynamism of the changes that have occurred in the main industrial portfolios and the coverage or concentration that the different developer groups o Investors drew up throughout the year, without leaving behind the modernization and adjustments of the industrial spaces.

The gross national industrial demand, which from January to October was more than 5.3 million square meters, according to the markets monitored by Solili, has been sustained both by the manufacturing sector, mainly concentrated in northern and shallow entities, and by the logistics that it has been the pivot of demand in Mexico City and in markets such as Guadalajara and Querétaro.

The same crisis that originally 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.

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

Other groups concentrated on expanding their logistics networks not only in the peripheries of the cities, but also swept the last-mile markets to gain key spaces when it came to offering the 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.

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

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Likewise, this type of property, which on average takes about nine months to build, allows reducing financial risks such as inflation by agreeing before the start of work on the purchase of the main inputs.

Increasingly, industrial tenants have a clear advantage of concentrating their capital in the operation of their companies, while the developer insures both the capital and the debt of the project.

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 the potential tenants.

Finally, 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.