By the end of Q3 2024, investments in the industrial real estate market are reflected in the growth of demand and the development of new projects. The general outlook for the country is conditioned by the national and international political environment, since the change in the executive branch of Mexico and the presidential elections in the United States could impact the direction of trade and fiscal policies.

Foreign Direct Investment during the first half of 2024 reached 64.7 billion dollars, highlighting the manufacturing sector as the main recipient, with 55% of foreign capital. Figure that demonstrates the country's productive capacity and its positioning as a strategic point in global supply chains.

The Bank of Mexico implemented a cut of 25 basis points in the interbank interest rate, reducing it to 10.5%, a decision supported by a slowdown in inflation which closed at 4.6% during the second half of September, showing a downward trend. low, a reduction that stimulates economic activity, facilitating access to credit and investments.

In the real estate context in Mexico, at the end of the third quarter of 2024, a figure of new supply was recorded that exceeded 1.5 million square meters, raising the national industrial inventory above 100 million square meters. The addition of vacant projects to the inventory has resulted in an increase in the vacancy rate, which has grown 1% in the last year. At the end of the third quarter of 2024, the vacancy rate stands at 2.8%, reaching its highest level since the beginning of 2022.

The highest vacancy rates are concentrated in the northern region of the country, with Ciudad Juárez having the highest figure nationally, with 5.7%. This increase is attributed to the slowdown in leasing that has characterized the year 2024 due to the challenges in the supply of electricity faced by market developers in the border city.

The markets of Reynosa, Mexicali and Tecate experience an increase in the indicator, closing the third quarter of 2024 with 4.8%, 4.7% and 4.5%, respectively. In contrast, among the markets with the lowest vacancy rates in the country are Puebla, Saltillo and Aguascalientes, with figures of 0.9%, 0.6% and 0.3%, respectively.

Industrial leasing in the country closes Q3 2024 with 1.9 million occupied square meters, which represents an increase of 73% compared to the same period in 2023. Monterrey stands out with 583 thousand occupied square meters, which is equivalent to a third part of the total demand at the national level.

The increase in industrial demand in Monterrey was driven by an automotive sector transaction of 187 thousand square meters located in the Ciénega de Flores industrial submarket.

The industrial market of Guadalajara also reported a rebound in the demand indicator, taking second position nationally with 248 thousand square meters, while Mexico City ranked third with 211 thousand square meters occupied.

At the end of the third quarter of 2024, accumulated demand nationwide reached 5 million square meters, which represents an increase of 18% compared to the same period of the previous year.

National construction activity has reached an all-time high, with 5.9 million square meters under development across the country. During the third quarter of 2024, more than 80 industrial projects began, which together represent 1.7 million square meters of work.

The industrial markets of Monterrey and Mexico City stand out for registering the highest levels of construction in the country, with 33% and 19% of the space under development, respectively.

Likewise, the industrial markets of Saltillo, Querétaro and Guadalajara have experienced significant increases in construction activity, with figures that are around 450 thousand square meters.

The average rental price nationwide remains stable, closing at $6.79 USD/m²/month during the third quarter of 2024. Mexico City and Tijuana continue to lead the market, with the highest prices, which reach $8.72 and $8.31 USD/m²/month, respectively.

On the other hand, the most competitive prices nationwide are found in the Bajío region. The markets of Guanajuato and San Luis Potosí stand out for having the lowest rents in the country, with prices of $4.92 and $5.41 USD/m²/month, respectively.

During the 3Q of 2024, the national industrial market reports encouraging figures, with demand that continues to increase accompanied by the detonation of new industrial projects. Construction activity in the country reached figures never seen before, being a clear indicator of the increase in industrial investments. 

As a whole, the indicators highlight the strengthening of the industrial market, projecting an optimistic outlook towards the end of 2024. Demand figures are expected to exceed those recorded in 2023 by approximately 20%. However, important challenges derived from the environment persist. global policy that could influence the flow of capital. Despite this, Mexico has established itself as a key hub for industrial expansion, which promises greater development opportunities and economic growth.