The Government of Mexico City invited real estate developers to invest in the industrial zone of Vallejo, in the Azcapotzalco mayor's office, as it considers that there is a great opportunity for logistics companies and distributors to take advantage of the strength of the capital's submarket.

"It is very important for real estate development and has great potential for having services that give greater value to the city," assured the head of the capital's government, Claudia Sheinbaum, to the members of the Association of Real Estate Developers (ADI) in their annual meeting.

In this regard, the city's Secretary of Economic Development, Fadlala Akabani, indicated that of the total number of industrial buildings located in Vallejo, which are made up of 50 hectares, almost 20 percent are unoccupied because more than 50 percent of the spaces they are less than 5,000 square meters, and unlike in the past, companies are now looking for places with more than 10,000 square meters for their operations.

In this sense, he explained that the priority of Mexico City's industrial policy is to recover Vallejo, as well as to provide guarantees for the area's infrastructure, as part of the Vallejo Partial Urban Development Program (PPDU) that was approved on last year, which will allow the arrival of more investors.

Check here: Vallejo is today the most attractive last-mile submarket in Mexico City

Thus, consequently, the strategy of industrial detonation in the area will continue. “What we are talking about with the businessmen who are already installed in the area is to create a preventive trust in the area so that the trucks can enter in the best conditions, it is about patching, desilting, sewage and drinking water.

The industries that are entering Vallejo are mainly of a logistical nature, but also industrial”, he highlighted. In 1929, 50 hectares were allocated for the creation of the Vallejo Industrial Zone located in the old Hacienda de Vallejo and in the San Antonio area, where various factories, workshops, warehouses, warehouses and offices were built, being definitively formed in 1944 .

In its beginnings, it was located on the outskirts of Mexico City, but now it is immersed in its heart. Vallejo currently represents less than 5% of the industrial inventory of CdMx, and the area contains the necessary attractions for the transformation of buildings with functional obsolescence.

Which generates multiple last-mile startups to join the capital's competition or expand their commercial positions.

According to the Solili platform, at the end of April 2022 the availability of the submarket exceeded 50 thousand square meters, 10 percent of the availability of the metropolitan area. In this sense, 86% of the availability corresponds to ships smaller than 5 thousand square meters.

In turn, the gross demand for this submarket did not reach 5,000 square meters, while the buildings located on the submarket doubled this number. This generated an increase in the rental price that currently exceeds 9 dollars per m2 per month.

Of interest: Inflation in Mexico registered a slight decrease to 7.65% in May

On the other hand, the Vallejo industrial zone contains class C and B warehouses and facilities that, despite their longevity, remain attractive to investors.

The Secretary of Economic Development assured that the country's capital is the most competitive entity, and is also the main recipient of foreign direct investment (FDI), not only from Mexico, but from Latin America, especially due to industrial recovery, which attracts companies by being able to connect with the different economic zones.

“During the first quarter of this year we are reaching the levels of foreign direct investment for all of 2021, only in the first quarter. It must be recognized that they are mainly in the financial field, but also in the real estate, automotive sector.

Companies such as Netflix, O'Donnell, Mercado Libre and FedEx are investing in the Vallejo area and this has affected the amount of investment in the capital”, he said.

Akabani Hneide highlighted the investment announcement by Doppelmayr, an Austrian company specializing in cable cars that built Line 1 of the Mexico City Cablebus, for 220 million pesos in the Vallejo industrial zone.

It is a hub for spare parts storage and technical training that will serve all of Latin America. In addition to a new investment from a transnational company that will invest in seven hectares of the area, which represents about 500 million pesos; however, due to business strategy, their names cannot be revealed.

In Solili you can consult industrial warehouses available in  Cuautitlán, Tultitlán and Tepotzotlán 

Original note