The border has participated in important increases in industrial demand that, together with the decrease in vacancies, have been key to the upward adjustment that rental prices have shown during the last year in Mexico.

In annual terms, the rental price of the Ciudad Juárez y Mexicali markets has registered increases above 28% and 14%, respectively, reflecting the largest upward adjustments at the national level. Tijuana, Puebla y Ciudad de México are three other markets that reflect significant increases in ranges between 10% and 12% annual increase.

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Another key indicator is the industrial construction promoted by developers in the region that have led Ciudad Juárez and Mexicali to record highs in the last three years, registering 431 and 253 thousand square meters of works in process, respectively.

This important indicator would be a favorable element to balance supply but requires a share of speculative investment that has yet to develop in these markets.

Regarding rental prices in Ciudad Juárez, the South submarket presented the highest unit rent at the end of 2Q 2022 for $6.64 dollars per monthly square meter above the average of the entity.

Mexicali at the end of August 2022 registered an average rent of $5.3 dollars per monthly square meter, reaching the maximum rental value on the Carretera Mexicali-San Luis Río Colorado submarket.

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When the increase in rental prices is analyzed, the inflationary spiral that has impacted the world cannot be ignored and that in the case of Mexico has brought the national inflation rate to 8.7%, even in the midst of two consecutive adjustments of 75 points base applied by the board of directors of the Bank of Mexico (Banxico) in order to achieve the convergence of inflation.

Inflation directly affects the main costs of inputs such as steel, cement, asphalt, which together with other components are required to build an industrial building.

Other factors inherent to the real estate market, such as the balance between supply and demand, have in turn triggered the price increase, mainly in the northern border markets, where the installation of operations on Mexican soil based on the advantages offered by the country was boosted. from the point of view of costs and proximity to the American market.