At the end of the first quarter of 2024, the panorama of the industrial market at the national level is characterized by a continuous and robust performance in its main indicators, especially demand, which persists on a path of sustained growth. This behavior offers a promising horizon for the economy, fueling favorable expectations for industrial development in the country.

Inflation registers an annual rate of 4.45% in the first half of February, marking a notable decrease compared to the same period of the previous year. According to data provided by the INEGI, in 2023 a rate of 7.76% was reported.

This significant reduction in inflation reflects a positive trend that could be attributed to the good management of the economic policies of the Bank of Mexico as well as favorable conditions in international markets. This decrease in the inflation rate may have important implications for the country's economic stability, easing pressure on prices at the national level.

The country's economic outlook suggests encouraging prospects, with projections for the rest of the year that point to growth in the Mexican Gross Domestic Product of 2.2% at the national level, according to expert analysis. This forecast would place Mexico above the Latin American average in terms of economic growth.

The industrial inventory at the national level registers an annual increase of 6.3%, driven by the constant expansion of industrial portfolios of developers, which has contributed to a gradual recovery of vacancy. At the end of March, the vacancy rate stood at 2.1%, exceeding the figure reported during the same period in 2023 by 30 basis points.

The border markets of Ciudad Juárez and Mexicali have the highest vacancy rates nationwide, with 4.4% and 4.0% respectively. They are closely followed by the industrial markets of Reynosa, Tecate and Guanajuato, which share a vacancy rate of 3.5%. On the other hand, the markets with the lowest vacancy rates nationwide are Aguascalientes and Puebla, with rates that barely reach 0.4% and 0.6%, respectively.

During the first quarter of 2024, nationwide leasing activity recorded solid growth, with gross demand rising to 1.6 million square meters, marking an increase of 8% over the same period in 2023.

Among the industrial markets that lead the demand indicator is Monterrey, which topped the list with 549 thousand square meters leased, closely followed by Mexico City 531 thousand and Querétaro with 132 thousand square meters leased.

The northern region of the country stood out as the epicenter of leasing activity nationwide, concentrating 49% of total demand. In addition to Monterrey, other markets in the region that stood out were Saltillo and Ciudad Juárez, with 80 thousand and 57 thousand square meters respectively at the end of March 2024.

The industrial markets of the Bajío region also showed positive performance, reaching a total demand of 287 thousand square meters of lease, together. Querétaro stands out, concentrating 43% of the total demand and Guanajuato 21%.

Construction activity maintains a solid performance at the end of the first quarter of 2024 with a total of 5.6 million square meters in the process of development nationwide, which reports an increase of 10% compared to the same period in 2023.

The Monterrey market stands out especially, which represents approximately a third of the country's total construction volume, with 1.9 million square meters under development. Followed by the Mexico City market, with just over 800 thousand square meters of works in progress.

During the first quarter of the year, there was a notable increase in the start of industrial projects in the country. In the first quarter of the year alone, the construction of 65 industrial buildings began, adding a total of 1.4 million square meters of new works.

Monterrey continues to be the epicenter of industrial growth at the national level, with the start of construction of 535 thousand square meters of industrial warehouses followed by the industrial markets of Mexico City and Querétaro, with the start of construction of 299 thousand and 193 thousand square meters , respectively.

The average rental price in the industrial sector nationwide experienced a significant increase of 20%, reaching $6.53 USD/m²/month at the end of March. This increase reflects a general upward trend in all industrial markets in the country.

The increase in prices has been driven by various factors, among which the rise in the cost of construction materials and the supply-demand imbalance stand out, since demand continues to be above market supply.

Among the industrial markets that reported the highest rental prices nationwide are particularly the cities of Tijuana and Mexico City, which report rental prices of $8.15 and $7.92 USD per square meter, respectively.

Likewise, the most competitive rental prices nationwide are found in the industrial markets of Guanajuato and Saltillo, which reported an average price of $4.70 and $5.06 USD per square meter, each, for the end of the first quarter of 2024.

Market prices are experiencing a notable increase, pressured by growing demand and continued interest from companies seeking industrial space to operate in Mexican lands.

The industrial market at the national level reveals a marked trend towards expansion in most of the country's cities. This behavior is supported by growing demand, the constant flow of new investments and sustained expansion in the construction sector, conditions that favor and support the industrial sector, and establish a favorable scenario for attracting new investments in the market. Mexico real estate.

The industrial market outlook shows a solid and promising trajectory, characterized by robust growth, strong leasing activity and suitable conditions for foreign investment, suggesting a prosperous future for the country's industrial real estate market.