There are several factors that influenced the strong growth of industrial demand in Mexico and the pandemic played to be an element in favor in a market where electronic commerce detonated hand in hand with changes in consumption habits.

The crisis in the supply chains made it easier for the Mexican territory to combine a rapid response to install production processes close to the demand, so the relocation was an event that in the first place energized the border markets to the north of Mexico, where Tijuana y Ciudad Juárez are faithful exponents.

In Mexico City, as well as in other markets in the center of the country, demand accelerated due to the need for logistics and distribution spaces, although requirements continued to emerge for light and medium-sized industries to settle in submarkets with greater infrastructure, as was the case in Toluca.

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Under a scenario where the demand increases and the vacancy is exhausted, the consequence appears with the increase in the rental price. To this we must also add that, motivated by the evolution of demand, the requirements of heights, technology, and infrastructure in the spaces that are rented are increasing, which pushes the rental price upwards. 

If the inflationary component is added to the equation, we can justify the rise in industrial prices present not only in the Mexican market but also in the rest of the world.

Tijuana and Mexico City lead the way with $6.15 and $6.14 dollars per square meter per month, according to Solili reports at the end of May 2022, followed by Ciudad Juárez with an average rental price of $5.62 dollars per square meter per month.

The increases in rental prices during the first five months of the year have been 2.2% in Tijuana, 7.8% in Ciudad Juárez and 2.6% in Mexico City, although in annual terms the comparison to May 2022 shows the highest percentage increase over of 24.1% over Tijuana followed by 21.4% over Ciudad Juárez.

Ciudad Juárez registered a vacancy that was further reduced during the month of May 2022, marking 0.4%, which will continue to push up rental prices in the entity, although so far in the second quarter of 2022, construction of 100,000 square meters of new warehouses began, which seeks to influence vacancy. 

The entity currently has only 18 vacant industrial buildings with areas ranging from 3.2 and 20.8 thousand square meters.

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Tijuana, which has also been registering critical vacancy levels, but which have improved slightly in the months of April and May, so it will be necessary to monitor the development of demand to see if this decrease continues in the coming months.

Mexico City is and will continue to be a benchmark for prices due to its high degree of institutional development, although so far this year gross demand has registered cautious figures when compared with the performance of similar periods in 2021 or with the strong acceleration that Monterrey maintains and that the flag at the forefront of the national industrial demand. 

This has caused the city's industrial rental price to go from $5.37 dollars per month, in May 2021, to $6.14 in May 2022.

Industrial rental prices at the national level are increasing across the board, however, Ciudad Juárez, Tijuana and Mexico City are the ones that report the greatest upward adjustment in this indicator.