Bajío’s Industrial Real Estate Market Sees Strong Growth, Driven by Automotive and Manufacturing Sectors

Net absorption in the industrial real estate sector of the Bajío region nearly doubled in the January-September period of this year compared to the same period last year, reaching 540,000 m², according to CBRE Mexico.

In its MarketView report for the industrial real estate sector of Bajío for Q3 2024, CBRE Mexico revealed that gross leasing activity (or demand) in the region reached 722,000 m², driven primarily by land sales transactions as well as the expansion of companies already established in the area.

The demand for industrial space comes mostly from tenants in the automotive and light manufacturing sectors, which together account for more than half of this demand, a trend that is expected to continue given ongoing negotiations.

As for construction activity, the region closed the period with 612,000 m² under development, 30% of which is pre-leased.

“The Bajío is known for having a significant automotive cluster, with automotive plants established in all four states, which has driven the commercialization of industrial spaces,” explained Rodrigo Folgueras, Vice President of CBRE Mexico’s Bajío region.

According to data from the Ministry of Economy, during the first half of the year, the states of the Bajío region (Aguascalientes, Guanajuato, Querétaro, and San Luis Potosí) attracted USD 3.688 billion in Foreign Direct Investment (FDI).

CBRE Mexico also noted that Querétaro led the region’s gross demand with 41% at the end of the third quarter of the year, driven primarily by transactions from tenants in various manufacturing sectors.

Guanajuato ranked second in terms of gross absorption, accounting for 28% of leasing activity, followed by San Luis Potosí with 19% of the absorption, largely driven by land sales transactions.

The vacancy rate remained slightly lower, closing Q3 2024 at 3.4%, a decrease compared to 4.2% in Q3 2023.

Construction activity has been characterized by the development of Build-to-Suit projects. By the third quarter of the year, development activity reached over 612,000 m², with 30% of those projects already pre-leased.

The light manufacturing and automotive industries are expected to continue demanding industrial space in the region, attracted by the logistical advantages, skilled labor, and the infrastructure provided by the industrial parks in the Bajío.

Inventory

At the end of Q3 2024, the Bajío region had an inventory of 14.1 million m², representing an annual increase of 5%. The markets with the highest inventory growth were Querétaro and Guanajuato, with Querétaro accounting for more than half of the new supply from January to September 2024.

Q3 2024 closed with 612,000 m² of activity under construction, set for delivery in the next six months.