Apodaca, Ramos Arizpe, and CTT. The Strategic Submarkets Leading Mexico's Industrial Demand in 2023

Three submarkets captured a quarter of the gross absorption of industrial warehouses during the first half of 2023, according to data from SiiLA. The Cuautitlán-Tultitlán-Tepotzotlán (CTT) corridor in Mexico City, Ramos Arizpe in Saltillo, and Apodaca in Monterrey were the regions that reported the highest occupancy of available spaces by new and recurring tenants.

In Apodaca (254,000 m²) and Ramos Arizpe (254,200 m²), the absorptions were primarily driven by companies in the automotive and manufacturing industries, such as CFMoto, Sekai, Skyjack, and Trane. In contrast, in the CTT, absorptions (343,400 m²) were led by consumer goods and transportation and logistics companies, including Mercado Libre and Zebrands.
Why Are These Submarkets Strategic?

Apodaca and Ramos Arizpe are strategic due to their interconnection in the Bajío region and their position as a natural route to the United States border. These submarkets are known for their large industrial warehouses, making them ideal destinations for companies seeking efficient logistics and ample space to expand their regional operations.

On the other hand, the CTT is strategic thanks to its location on the northern outskirts of the Mexican capital. This submarket stands out for its key connectivity to major transportation routes and the highway network that connects Mexico City with the central and northern regions of the country. Furthermore, it is close to the Mexico City International Airport, facilitating distribution on a national and international scale.

In the context of nearshoring, while Apodaca and Ramos Arizpe have been particularly attractive to the automotive industry due to their strategic location for exports to North America, the CTT has diversified across various sectors and focuses on distribution within the country's largest consumer market, the Mexico City Metropolitan Area.

Growth and Demand in Three Mexican Regions

Over the past three years, the inventory in Apodaca, CTT, and Ramos Arizpe has increased by 18% to 19%, and their vacancy rates have dropped by 60% to 80% due to high demand for spaces in these regions and limited new inventory deliveries. High demand and limited availability –with rates ranging from 0.8% to 1.3% depending on the region– have driven price increases of 20% to 40%, depending on the case.

With growing demand catalyzed by nearshoring and the surge in e-commerce following the coronavirus pandemic, it's essential to ask: What types of spaces are in demand in these regions?

According to SiiLA Market Analytics, 87% of the space absorbed during the first half of 2023 was Class A in medium and large-sized industrial warehouses.

In Apodaca, occupied warehouses averaged 6,200 m², while in the CTT and Ramos Arizpe, they averaged 11,500 m² and 13,400 m², respectively.

The provided data indicates a positive trend for 2023 in these three submarkets, with strong demand for modern, high-quality, and large-scale industrial facilities. This is closely linked to economic growth and increased industrial activity in these regions, whether through the expansion of existing companies or the arrival of new ones.

For more information on this and other trends in the commercial real estate market, explore SiiLA REsource or contact us at contacto@siila.com.mx.