The growth rate of gross industrial demand in the capital of the country reaches almost 13% if we compare it with 2022, when one month remains from the end of the first half of the year. Class A buildings continue to lead tenant preferences.

The average rental prices registered so far in the second quarter of the year have continued to mark the upward trend, while vacancy adjusts in the opposite direction, reaching its lowest percentage since January 2021 and thus reaching 1.6% at the close of May 2023.

Regarding rental prices, Vallejo, Iztapalapa y Cuautitlán register values above the average rental price of $6.8 dollars per monthly square meter in May 2023.

Of interest: Falls in vacancy rates, a challenge for the growth of industrial demand

Developers consider the increase in prices of materials in the construction cost structure, although they may be favored with the exchange rate that has been about to break the barrier of 17 pesos per dollar, which takes it to levels similar to those registered in 2015.

If a tenant is currently looking for a Class A or B industrial space in Mexico City, they will find close to half a hundred buildings ranging from one thousand to 66 thousand square meters, distributed mainly along the CTT submarkets (Cuautitlán, Tultitlán and Tepotzotlán) and Toluca along with some options on Ixtapaluca, Vallejo and Naucalpan.

Those closest to the city center have continued to arouse the interest of various companies seeking to gain space in the last mile in order to optimize the delivery processes that complement other spaces such as Distribution Centers (Cedis) and other intermediate warehouses.

So far in 2023, there has been interest from companies in sectors such as electrical, electronic, logistics and light manufacturing, which do not occupy large spaces of industrial real estate, so they could have opportunities on the aforementioned corridors.

In recent statements by the head of the Secretariat for Economic Development (Sedeco), it was indicated that of the 400 companies that intend to establish themselves in Mexico under the trend of nearshoring, 40 of them indicated they would do so in the country's capital, where they explicitly indicated the interest of a Korean semiconductor firm that is considering settling in Mexico City.

Check here: Guanajuato reactivates industrial construction due to growing demand

If we review the figures for gross industrial demand at the end of 1Q 2023, it is the logistics sector, light manufacturing and pharmaceuticals take the lead, while for the remainder of the year more operations could be registered that include the electrical and electronic sectors that have been advancing in the intentions to occupy spaces in the capital.

Given this scenario, the constructions are still in progress and report the progress of 510 thousand square meters that are mostly speculative with the presence of various institutional developers with expertise in this market.

The high occupancy levels of the industrial portfolios are expected to continue in the remainder of the year, which could drive the start of more projects given the current scenario of rising prices.