The demand, mainly on the border, has already had an impact on an increase in monthly rental prices, in part due to the lack of supply of available real estate spaces, according to the Solili real estate consultancy company.

According to results for the first quarter of 2022, the border region alone accumulates 54% of the gross demand for industrial spaces throughout the country. For example, only in the case of Monterrey, the total demand represents a proportion of 25% at the national level.

"The scarcity in supply translates into increases in rental prices, since the few options that are offered have many applicants who will compete for them and they do so through price," Solili pointed out in his released information.

“Towards the north of the country, Tijuana and Ciudad Juárez are at the forefront with an annual adjustment of 23% and 16%, closing with rental prices of 5.40 (dollars) and 6.00 dollars per square meter per month at the end of 1Q 2022”.

See also: Lack of industrial space in northern border markets pushes up prices strongly

Other corridors such as Tecate and Mexicali, in Baja California, also reported increases in their monthly rental prices, with increases of 15 and 14%, respectively.

However, not only demand has influenced price increases, but also inflation, which only in 2021 reached an annual level of 7.36% is identified as one of the factors of increase in monthly rental levels.

Even the increase in construction materials, as in the case of steel, and the prices of gas and gasoline have been identified as elements that are reflected in the rental prices of industrial buildings.

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"These conditions of high inflation and low vacancy with a growing demand are the immediate signal to the market to activate the construction of speculative spaces that have not yet been strongly awakened in several markets in the north of the country," Solili said.

“The northern location of the country for two years had taken advantage of the signing of the T-MEC and the pandemic created an important window of opportunity for markets close to the United States, where vacancies have reached historical lows, as is the case of Tijuana, Ciudad Juárez y Tecate, which registered 0.6% at the end of the first quarter of the year”, detailed the report presented by the real estate firm.

In Solili you can consult industrial warehouses available in Guadalajara and Ciudad de México

Original note