The scarcity of land, as well as the difficulty of accessing electricity in some border markets, has caused the supply of industrial space to remain limited in Mexico, said Luis Gutiérrez, director general of Fibra Prologis.

The reduction in supply coupled with the growth in demand caused unemployment in the national market to contract to 1.7% during the fourth quarter of the year, as indicated in its recent quarterly financial report.

Fibra Prologis said that the demand for the lease of logistical real estate was 32.4 million square feet last year, exceeding completions by 21 percent. Activity was strongest in the Mexico City and Monterrey markets.

Check here: Industrial demand in Mexico City grew 35% in 2021

“In 2022, we forecast balance in our six markets. In particular, we expect vacancy to remain below 3% for modern products, which will result in higher market rent levels," Luis Gutiérrez said in the document.

He even anticipated that the increase in rents will be driven, mainly, by favorable fundamentals of supply and demand, higher replacement and construction costs, as well as by the increase in land values.

While local consumption and manufacturing for export continue to be the main drivers of the industrial real estate sector, which ended 2021 as the best year in decades, setting records for the share of demand and the net absorption of spaces.

Of interest: In Chihuahua Fibra Nova signs a lease agreement with BWI

In the case of Fibra Prologis, last year it achieved a new record in its occupancy rates, closing at 97.9%, with an average term of up to 45 months for new leases. Net effective rent at the same properties increased 8.8 percent.

Net absorption in the six markets it operates, such as Mexico City, Monterrey, Ciudad Juárez, Tijuana, Guadalajara and Reynosa, during the fourth quarter of 2021 totaled 10.6 million square feet, while vacancy for modern products decreased to 1.7 percent.

In Solili you can consult industrial warehouses available in Saltillo, Chihuahua and Tecate

Original note