The Battle for the Last Mile: How Proximity Is Redefining Logistics in Mexico

In Mexico City, the farther a warehouse is from the center, the lower its rent tends to be. According to data from SiiLA, for every kilometer a facility moves away from this urban epicenter, the price per square meter drops by an average of 0.2%. That may seem small, but across the metropolitan scale, the impact is significant. For example, a warehouse located 60 kilometers out may lease for up to 12% less than one just five kilometers away—even if the two are nearly identical.

That difference is no coincidence: it reflects the growing value of proximity. In cities where delivery speed has become a competitive edge, location is no longer just a financial decision—it’s a strategic move. The last mile has become a critical zone for accelerating commerce, controlling operating costs, and reducing the carbon footprint of urban logistics.

Over the past decade, the boom in last-mile industrial properties in major cities like Mexico City, Guadalajara, and Monterrey has responded to a profound shift in how we live and consume.

On the one hand, urbanization has concentrated nearly 80% of the population in cities, pushing infrastructure, mobility, and land availability to their limits. Cities expand outward, but the demand for goods and services intensifies at the core—precisely where operating becomes most difficult. On the other hand, e-commerce has fueled the need for faster deliveries, lower inventory, and greater precision. It’s no longer about having goods available—it’s about having them nearby.

These two forces have made the last mile one of the most critical—and most fragile—links in the urban logistics chain.

Nowadays, the challenge is not recognizing the value of proximity, but making it viable in increasingly restrictive urban environments. As industry experts like Rafael McCadden, Industrial and Logistics Director at Colliers México, point out, operating within the city comes with obstacles that drive up the cost per square meter: zoning restrictions on logistics activity, limited access for heavy vehicles, a shortage of maneuvering yards, and spaces that, when available, often require conversion or redesign. Add to that the pressure of sharing space with housing, retail, and local traffic.

The core issue is that cities weren’t designed for logistics—even if they’re now trying to adapt. That’s why the higher costs stem from operating in areas where everything is more expensive, just as the demand for proximity reaches an all-time high.

Despite higher rents and operational challenges, locating in central areas is rarely a real barrier. As experts explained at The Logistics World Summit & Expo 2025, in a market where “immediacy is no longer an option but a logistics necessity,” being close to the end consumer enables faster delivery, fewer miles, and more efficient operations. As a result, the true value of last-mile properties lies in three key areas: speed and quality of service, lower logistics costs, and a reduced carbon footprint.

They also noted that while a well-located property may command higher rent, its impact on overall costs is marginal—typically between 3% and 5%—while transportation can account for up to 65%. For that reason, location should not be defined by price, but by its ability to optimize operations.

That logic isn’t just theoretical—it’s visible on the map. In three of the country’s main industrial regions—Mexico City, Guadalajara, and Monterrey—last-mile development consistently targets areas with the greatest connectivity and proximity to consumption hubs.

According to SiiLA, in the capital, key submarkets include Vallejo–Azcapotzalco, Iztapalapa–Tláhuac, and Naucalpan. In Monterrey, Apodaca and San Nicolás hold a significant share of the premium logistics inventory. And in Guadalajara, the Antigua Zona Industrial serves as a strategic point for meeting urban demand.

Horacio Jácome, Industrial Director at Colliers in Guadalajara, points out that most last-mile operations are still concentrated close to the city center. However, the lack of available space has shifted some of that demand toward areas with better road access, such as Zapopan and Periférico Sur. In Monterrey, explains Antonio Fumagal, Senior Broker at Colliers, urban expansion has pushed many companies toward peripheral corridors like the one connecting Apodaca and Santa Catarina, where logistical challenges—traffic, restrictions, and availability—combine with undeniable strategic value. A similar trend is emerging in the capital, where the metropolitan fringe has started to absorb operations once considered unthinkable outside the urban core, forging a new balance between proximity, efficiency, and availability in a setting where adapting to the city is just as vital as supplying it.

Understanding where the last mile is headed is key to anticipating the next steps in industrial development. To learn more about the evolution of Mexico’s industrial real estate market, visit SiiLA REsource or contact us at contacto@siila.com.mx.