Increased demand for industrial spaces in Mexico City and northern cities


Mexico City and northern cities, such as Monterrey and Tijuana, concentrated the demand for industrial spaces at the start of this first quarter, since the behavior of this real estate sector in 2021 continued.

In a conference, the general director of Datoz, Sergio Mireles, announced that within the different cities of the country -especially in those that have the capacity to respond in terms of electrical infrastructure and that have the largest consumers- a increased demand for spaces.

The main reasons include the pandemic, the rise of digital commerce, the completion of supply chain operations in Mexico, the commitment of the country’s cities to industrialization – where the northern region stands out due to its proximity to the American Union. –, the commercial disagreement between China and the United States and the war in Ukraine.

“Since the beginning of the last decade, the popularity of e-commerce and consumer preference have increased, since then a regional consolidation of supply chains has been triggered and this trend has accelerated in recent years due to the Covid-19 crisis. and the war in Ukraine”, said Datoz partner Pablo Quezada.

“In the case of Mexico, the trade war between the United States and China and the increase in the cost of the Chinese hand with the Mexican have been factors that also generate this acceleration,” he added.

Sergio Mireles indicated that this demand is also generating an increase in real estate prices, but more factors are also being added, the lack of construction and the shortage of energy in some areas of the country (which is why cities with electric).

The largest increases in the starting prices of industrial land were in cities such as Nogales with 20%, followed by Ciudad Juárez and Mexicali, with 18 percent.

Meanwhile, in the average closing price, the increases were concentrated in Reynosa with 67%, Tijuana with 35%, Chihuahua with 21%, Puebla with 18% and the country’s capital with 13 percent.

“The land price component is important, there has been an increase in land values ​​at the national level, which end up affecting marketing prices (…) If the same pace of construction is generated with the demand, they will see greater increases in the issue of starting prices”, he stressed.

In this sense, he said that due to the high demand for industrial spaces, a reduction in the availability of spaces was generated, since it fell 26% annually.

In Ciudad Juárez, availability in this first quarter fell by 49%, while in Monterrey it fell by 40% and in Mexico City by 35 percent.

Increase

Sergio Mireles pointed out that in this first quarter there was a severe increase in the prices of construction materials, which affected the start-up of industrial real estate works.

For example, only 11 of the 21 markets that Datoz evaluates started construction and the rest had a drop of between 20 and 78 percent.

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