At the end of the second quarter of 2024, the Mexican economy has shown positive behavior at the macroeconomic level. This momentum has been transferred to the real estate market, where the industrial segment has stood out with positive results.

The effects of nearshoring are still present, evident in the amount of investments that continue to arrive in Mexico. According to preliminary figures from the Ministry of Economy, Foreign Direct Investment has shown a successful performance during the first five months of the year, with an investment expectation that amounts to 39 billion dollars. The manufacturing sector has attracted more than 55% of foreign investments during 2024.

During the last meeting of the Bank of Mexico held in June 2024, it was decided to keep the reference rate unchanged, at 11%, with the objective of mitigating the inflationary rise after the electoral period. The inflation rate in the first half of June reports 4.78% annually. However, the round of cuts in the reference rate is expected to continue in the coming months, which could translate into a more favorable environment for investments and financing.

Investments in industrial parks continue to expand, reflected in the increase in industrial inventory nationwide. During the second quarter, the national inventory exceeded 100 million square meters, representing an increase of 11.8% compared to the second quarter of 2023.

The national vacancy rate experienced significant growth over the last year, closing the second quarter of 2024 at 2.6%. The rate reported an annual increase of 90 basis points, which in absolute terms represents an increase of 1.2 million square meters when compared to the second quarter of 2023. This considerable increase in the supply of industrial buildings has been a reflection of the high interest in industrial infrastructure, which has led developers to continue investing in new buildings.

The Querétaro and Ciudad Juárez markets reported the highest vacancy rates nationwide at 4.4% and 4.3% respectively, followed by Mexicali and Reynosa, both reporting a vacancy rate of 4.1%. In turn, the markets that report the lowest figures in the vacancy indicator are Puebla, Aguascalientes and Saltillo with 0.4%, 0.5% and 0.9%, respectively, being the only markets nationwide that are below 1%.

Leasing activity nationwide ends the second quarter of the year with strength, reporting nearly 1.5 million square meters in demand. Mexico City once again leads the national demand with 388 thousand square meters leased, followed by the city of Monterrey, which reports 309 thousand square meters occupied.

At the regional level, the markets in the north of the country accounted for 49% of the leasing activity of industrial properties. On the other hand, the Bajío region maintained 18% of the demand.

The accumulated demand during the first six months of the year exceeds 3 million square meters, remaining at levels similar to those reported in the first half of 2023. This constant performance indicates stability in the industrial property leasing market, reflecting confidence Sustained demand from investors and continued demand from companies.

The construction of industrial properties continues to grow, reaching unprecedented levels. At the end of the second quarter of 2024, 5.6 million square meters were registered in development. Monterrey remains the main market for this growth, concentrating 38% of the developments, followed by Mexico City, with 21% of the projects under construction.

During the period from April to June 2024, the start of more than 80 new industrial projects nationwide was recorded, adding a total of 1.7 million square meters under construction. Monterrey stands out particularly, with more than 600 thousand square meters starting construction this quarter. Thanks to its extensive territorial reserves for industrial use, developers are strongly promoting the creation of new projects in this region.

Mexico City and Tijuana occupy the second and third positions in the start of new industrial projects, with 361 thousand and 208 thousand square meters respectively. These markets are distinguished by maintaining a high level of demand, driven by their consolidated infrastructure, access to key markets and a qualified workforce that attracts continuous investments in the industrial sector.                                                                     

Rental prices show a general upward trend, reaching a national average of $6.78 USD/m²/month in the second quarter of 2024, which represents an increase of 20% compared to the same period in 2023.

The highest prices nationwide are found in the industrial market of Mexico City, with a rental price of $8.71 USD/m²/month, followed by those of Tijuana, which report a price of $8.15 USD/m²/month.

The most competitive prices continue to be located in the Bajío region, where the Guanajuato market registers the lowest prices with $4.82 USD/m²/month, followed by San Luis Potosí and Querétaro with $5.29 and $5.59 USD/m²/month respectively.

At the end of the first half of 2024, the industrial panorama in Mexico shows notable growth, driven by the solid performance of leasing activity and the increase in investments that encourage the creation of new industrial infrastructure. This dynamism maintains upward pressure on rental prices, indicative of a market that continues with ample opportunities for investors and developers in all regions of the country.

The expansion of industrial activity underlines confidence in the Mexican economy, the leasing of spaces is a reflection of an environment conducive to growth and innovation in key industrial sectors.

Growth expectations in the national market are positive, anticipating that demand figures will exceed those recorded in 2023 at the end of the year. This optimism is based on the increase in both national and foreign investment, supported by an economic environment that favors industrial development. Demand for industrial space reflects growing confidence in the country's long-term prospects, highlighting the market's adaptability to global and local dynamics.