Mexico's Gross Domestic Product reported a 0.2% growth during the second quarter of 2024. In response, the Bank of Mexico reduced its annual GDP growth forecast, adjusting it from 2.4% to 1.5%. Inflation showed a slight decrease, closing the first half of August at 5.16%. In turn, the Mexican peso continues to experience volatility, ending August at $19.65 pesos per US dollar.

Although the Mexican economy faces important challenges, industrial real estate sector indicators present a favorable outlook, reflecting an increase in investments. Industrial demand at the national level closed August 2024 with 827 thousand square meters, a figure that doubles that reported in the same month of 2023.

In August 2024, Monterrey led industrial leasing with more than 300 thousand square meters occupied, accounting for 38% of the national total. This increase in demand in the Monterrey market is attributed to a transaction by an automotive company. A megaproject that will be located in the Ciénega de Flores industrial corridor, and which would begin construction at the end of 2024.

The Tijuana industrial market rises to second position reporting a demand of 97 thousand square meters, while third place is occupied by the Guadalajara industrial market, which also reported an increase in leasing activity, closing the month of August 2024 with a figure of 89 thousand square meters.

During the period from July to August 2024, the accumulated national demand experienced an increase, reaching more than 1.3 million square meters. The northern region captured 60% of the country's demand, while the markets in the Bajío represented 20% of the space occupied in this period.

Construction activity continues to advance at an accelerated pace, reaching its highest point with nearly 5.8 million square meters in the process of development nationwide.

During the month of August 2024, a total of 421 thousand square meters were started. The start of new projects was led by the industrial markets of Aguascalientes, Ciudad de México and Monterrey, which accounted for 20%, 17% and 15%, respectively, of the buildings that began to be built.

The new supply at the national level during the month of August 2024 reported the delivery of more than 527 thousand square meters that were incorporated into the national industrial inventory. The country's vacancy rate closes the eighth month of the year at 2.7%, which in absolute terms represents close to 2.8 million square meters ready to be occupied.

In August 2024, the country's industrial sector shows a positive performance, evidenced by the main market indicators. The cumulative demand in the period from January to August reached 4.4 million occupied square meters, which represents an increase of 12% compared to the same period in 2023. This growth underlines the stability of the sector in the face of the country's economic outlook.

The increase in real estate investments, together with the high construction volumes in the country, are indications that the industrial sector continues to expand. The results reflect the confidence in the market by developers and companies that continue to drive demand for industrial space. Despite the economic challenges, the industrial real estate sector remains a fundamental pillar in the country's economic development.