Northeast leads growth in industrial real estate market

During the third quarter of 2022, Mexico reported 331 deals worth over 45 million square feet of national take-up. According to Marcos Álvarez, CEO of Market Analysis, the Northeast region led the way.

According to the industrial intelligence firm's data, behind the Northeast with 41 per cent of total acquisition, the Central region followed with 24 per cent, North Central with 16 per cent, Bajio with 12 per cent and Northwest with 7 per cent.  As of the end of the third quarter of the year, the market size reached 819.9 million square feet.

Thus, the Northeast region, which includes Saltillo, Monterrey, Reynosa, Nuevo Laredo and Matamoros, was the most dynamic, accounting for 119 deals, 35% out of the 332 total transactions recorded at the end of the third quarter in the country. This was mainly driven by Monterrey, the most attractive market in the region, with 80 of the total, and Saltillo, which accounted for 27 transactions. The two markets in the region reported a poor performance with no transactions, namely Nuevo Laredo and Matamoros, despite their proximity to the United States.

This was followed by the Central zone (Toluca, Mexico City and Puebla) with 74 consolidated deals, being Mexico City the one with the highest take-up, accounting for 74% of the whole.

Up from the central zone, the Bajío (San Luis Potosí, Querétaro, Guanajuato, Guadalajara and Aguascalientes) followed closely with 70 solid deals. With 30 per cent absorption, the Querétaro market showed the highest take-up. This was followed by the North Central and Northwest regions with a combined total of 45 and 24 deals in that order. However, unlike the rest, both regions are made up of a smaller number of markets.

Monterrey, the leading market

Monterrey and Mexico City are the markets with the highest number of solid transactions in the country. By far the most attractive market was Monterrey, which reported the highest amount of transactions, both for leasing and land purchase.

"Leasing accounted for 63% of gross absorption up to the end of the third quarter, while industrial space acquisition increased, as many companies have decided to relocate their operations permanently to Monterrey," the document states.

A total of 80 consolidated transactions were reported in this market, with the Apodaca submarket accounting for the highest share (40 per cent). The most representative transactions include Kohler, with 70,000 m2 in Stand Alone (in Guadalupe); Hengli, with 67,900 m2 in Finsa Santa Catarina (Santa Catarina); Lizhong, with 65,000 m2 in Interpuerto (Ciénega de Flores); Toro Company, with 61,100 m2 in Prologis East (Apodaca); and Kuka Home, with 58,500 m2 in Interpuerto (Ciénega de Flores).

On the other hand, in Mexico City, 38% of the total number of transactions were registered in the Cuautitlan submarket, where the most important firms include DHL, with 699,654 sqm in Cuatipark II; Ford, with 538,200 sqm in Stand Alone; 313,186 sqm in BTSD Cuautitlan; and Ademsa, in Tultitlan, with 388,649 sqm in World Park Tultitlan.