Mexico City remains in second place in terms of national industrial demand after the first position occupied by Monterrey. 

The capital of the country will accumulate 275 thousand square meters during the second quarter of 2023. Toluca leads the preferences of tenants followed by the submarkets of Cuautitlán, Tultitlán y Tepotzotlán that make up the CTT, which together accumulate 95% of industrial demand with the participation of Vallejo with the remaining 5%.

According to the latest report of the State Competitiveness Index 2023, prepared by the Mexican Institute for Competitiveness, Mexico City positioned itself as the only entity that qualifies with high competitiveness.

Check here: Main submarkets in the north of the country that attract industrial demand

The strong manufacturing vocation of the main food and beverage, textile, technology, electronics, and pharmaceutical industries, among others, have been able to take advantage of factors such as the availability of labor, infrastructure, transportation, and services that guarantee performance of their production processes.

However, it is the logistics sector that has continued to drive the growth in demand, being the great protagonist. The most demanded sizes in 2Q 2023 correspond to warehouses between 5 and 10 thousand square meters and surfaces above 20 thousand square meters.

The Class A properties that make up the speculative offer managed to attract tenants interested in a space towards an increasingly scarce offer, if we consider that the current vacancy in the capital of the country registers 1.2%, its lowest level in the last five years.

Of interest: Solili Industrial Report 2Q 2023, vacancy and exchange rate increase prices by 15% per year

These vacancy levels in the midst of an inflationary scenario, where the Mexican currency has already broken the floor of 17 pesos per dollar at the beginning of July 2023, have been the key to the increase in average rental prices nationwide, which already exceeds fifteen%.

In the specific case of the capital, the increase in rental prices has been 12% since the beginning of the year, closing at $6.7 dollars per square meter at the end of June 2023.

Nearshoring will continue to favor both the northern markets, such as Mexico City and the Bajío, since they combine the availability of qualified human resources, land and air connectivity, with better integration of the manufacturing industry abroad.