Industrial real-estate market showed a steady rate

The industrial real estate market in the Latin America region presented, during the first semester of 2018, a steady rhythm reaching a total inventory of 38.89 million m², more than 2.6 million m² than the first semester of 2017.

According to the Newmark Knight Frank report for the region, during the first semester of 2018, the activity of the construction is kept without drastic changes with 1.96 million m².

“The case of Mexico presented a slow rhythm attributed to the electoral period; however, as the transition process has started between the current and the next administration, decisions are being made of national and foreign investors, added to the NAFTA 2.0 negotiations which are arriving to good port this year,” said Giovanni D’Agostino, president for Mexico and general director for Latin America of Newmark Knight Frank (NKF.)

He added that the industrial inventory of Mexico City and its metropolitan area (ZMCM, by its Spanish initials) presented the highest semiannual growth in the region with the entry of 218 thousand square meters and closed the second trimester very close to 10 million m², supporting the good health of the market.  Another positive indicator was the recovery of the trimestral absorption, which increased to 237 thousand 978 square meters and reduced 5.5 % the availability rate.

It is worth mentioning the expansion of the electronic commerce as an agent increasingly important in Mexico City.  An example of that is the company Mercado Libre which closed the acquisition of more than 97 thousand m² in the corridor of Tepotzotlan, northern the city.  With that, the accumulated absorption increased to 357 thousand 600 square meters and the average leasing price was reduced to 5.30 m² per month.

The activity in the construction showed an increase of 10 % compared with the previous semester, the industrial buildings located in the municipality of Tultitlan stood out with more than 37 thousand m².