The industrial market of Mexico City has been depleting its industrial vacancy at a rate that generated an annual contraction of more than three percentage points, registering 1.9% at the end of February 2023.

Currently, the corridors of  Cuautitlán, Tultitlán y Tepotzotlán (CTT) together with Toluca, which is where more than three quarters of the capital's inventory is concentrated, have more than 90% of the 300,000 square meters available.

Check here: Real Estate Fibras specify more than a thousand industrial spaces

If the historical quarterly gross demand of Mexico City in recent years is analyzed, it has moved around 250 thousand square meters, with the exception of the third quarter of 2022 where it almost doubled that figure.

In other words, Mexico City currently has vacant spaces that will practically be absorbed in a single quarter, while the works in progress that are being incorporated are around 460,000 square meters, which is slightly higher than another quarter of demand. .

In a highly speculative market, the scarcity of land with infrastructure is decisive for developers to see limited their interventions to get land in order to close new parks.

Therefore, this unsatisfied demand will explore three courses of action. The first, the development of new corridors other than the traditional ones, which could be the case of Zumpango and Huehuetoca, although they do not represent the same potential that the CCT and Toluca as a whole represented in the last five years for Mexico City.

Of interest: Solili Industrial Report 1Q 2023, industrial demand in Mexico grew 47% compared to 1Q 2022

The second option is associated with exploring other nearby markets such as Hidalgo, Querétaro and Puebla that could take advantage of the situation and attract part of the demand to their territories.

The third option is the reconversion of old industrial spaces, such as the latest interventions that have been triggered in Vallejo and Naucalpan, where buildings that have reached their functional obsolescence may have a new opportunity. This option will also be on a much smaller scale and would imply costs that may be attractive for certain logistics activities that seek to compete in proximity to the capital's demand.