In general, the vast majority of industrial real estate markets in Mexico have been subject to a notable increase in gross and net demand, since vacancies are close to minimum levels.

If we compare what is being built in each of the national markets with the quarterly demand for 2Q 2022, we find that just over half of these markets register construction figures that exceed by more than 3 times what was being demanded in the second quarter of the year.

In other words, markets such as Tijuana, Ciudad Juárez and Querétaro are the ones with the greatest construction activity based on their speed of absorption. They are followed by San Luis Potosí, Monterrey, Guadalajara and Mexicali, although at a slower pace.

Of interest: The industrial inventory in the country grows by just over 1.2 million m² during the 3Q 2022

However, at the other extreme are those markets that need to boost construction in order to meet the pace brought by the demand that they themselves register. Tecate, Chihuahua, Reynosa, Puebla, Saltillo and Guanajuato are located in this group.

For example, in Guanajuato the gross absorption of the 2Q 2022 reached almost 230 thousand square meters and the construction that advances in the entity exceeds 430 thousand square meters, exceeding what is built almost double what this market demands.

Now it will be necessary to consider what proportion of these new constructions corresponds to custom-made projects, since if this comes to dominate over speculative projects, the situation further compromises market availability.

Saltillo would be another of the markets that requires further dynamization of its industrial constructions. The constructions that advance at the end of August 2022 reach 213 thousand square meters, while the quarterly demand very close to that amount is close to 190 thousand square meters. This northern market occupies the sixth position at the national level in terms of cumulative gross demand from January to August 2022.

Check here: Monterrey, Saltillo, Querétaro and Reynosa are the markets where more projects start construction

We close with the cases of Chihuahua and Tecate where what is currently being built is below what was demanded in the last quarter, so the need to attract new speculative developers is even more evident, although they handle demands below Guanajuato and Saltillo, previously mentioned.

The vacancy rates of all the country's markets are under downward pressure, due to high volumes of demand, despite the fact that construction has reached record numbers, it is necessary to reactivate the construction of speculative projects since the supply is not satisfying the demand for this type of projects.