During November of this year, the national demand or gross absorption of real estate industry is similar to that registered in October 2021, which together accumulated 780 thousand square meters (m2) facing the end of the last quarter of the year, according to the monthly report of Solili, a real estate information platform.

In November 2021, Monterrey managed to rise to the first position in gross demand registering almost 95 thousand m2, followed by Mexico City and Tijuana with just over 78 and 45 thousand m2, respectively.

"This performance, together with that of October, makes us foresee that these 3 markets will lead the quarterly demand," according to the report.

In October, Tijuana already registered 0.73% vacancy and developers and investors in understanding of the real estate dynamics lined up batteries to activate the construction that only in October registered the start of 123 thousand m2, in a market that does not register vacancies during the month that culminated.

Monterrey has also been able to take advantage of the strong dynamism generated on the border, even with the difficulties brought about by the brake on the vehicular passage between Mexico and the United States, managing to incorporate almost 24 thousand m2 to its industrial inventory.

The construction of 63 thousand m2 began in this square, in a market where manufacturing and logistics activity inject this dynamism, although it was the market that registered the highest unemployment at the national level, this figure being lower than the gross demand and new constructions, and it is due to expiration of contracts where developers will seek to adapt them to new requirements to bring them to the market.

Check here: Chinese automotive supplier in Mexico decreases due to the effect of the T-MEC

Mexico City closes the month without the start of new construction or the completion of projects, since 518 thousand m2 continue to be executed, which would lead to an increase in inventory of more than 3 percentage points.

Vacancies in the capital remain at a level of just over 12 thousand m2, being a very reasonable value for the capital's market size and the seasonality of multiple logistics activities carried out there.

The most dynamic submarkets continue to be those corresponding to the CTT (Cuautitlán, Tepotzotlán and Tultitlán) together with Toluca and Vallejo, where the latter has managed to advance significantly since it grouped the base conditions as a last-mile market.

Querétaro has continued to have a strong boost in demand so far this quarter and accumulates more than 73 thousand m2 that take it to the fourth position at the national level, receiving the harvest of positioning efforts at an international level.

Ciudad Juárez and Mexicali, due to their border status, stand out with a gross demand in November of at least 34 and 27 thousand m2, respectively, maintaining the same inventory levels, without the start of new construction or unemployment.

Of interest: Logistics, electronic commerce and retailers maintain industrial demand levels in CDMX

Guadalajara and Guanajuato with gross demands that almost reached 16 thousand m2, managed to complete works in the month for 22 and 16 thousand m2 respectively, without registering the start of new construction.

Reynosa accumulated 37 thousand m2 of gross demand so far in the fourth quarter of the year, ranking seventh at the national level, knowing how to take advantage of the production relocations that occur mainly in the northern markets, with a predominance of expansions of companies already located in the area.

Saltillo, which has shown excellent performance throughout the year, accumulated 26 thousand m2 of demand so far in the fourth quarter, in the same order of number of industrial buildings that were closed and those that began construction, during the months of October and November 2021.

The same vicissitudes that the pandemic has brought have been the opportunities that have allowed to take advantage of the industrial market in Mexico, where nearshoring has opened opportunities for various regional markets after the interruption of supply chains, which have not yet achieved their recovery .

Developers and investors seek certainty and guarantee in the investment, so it will be necessary to be attentive to capital flows in the midst of the various circumstances that are emerging towards 2022.

In Solili you can check the Industrial Real Estate Report for November 2021

Original note