Guanajuato is closer to becoming Mexico's largest logistics hub

Guanajuato seeks to become the most important logistics hub in Mexico. The state government of Guanajuato has been pursuing agreements with the government of Singapore for over three years to transform Guanajuato into Mexico's most prominent logistics hub. The goal is to leverage the Interoceanic Corridor of the Isthmus of Tehuantepec (CIIT) regional development initiatives to enhance infrastructure and supply chains.

Yesterday, the Government of Guanajuato and the Singapore Cooperation Enterprise (SCE) formalized their collaboration with a Memorandum of Understanding, aimed at exchanging "practices and knowledge in the areas of Economic Development, Planning, Strategy, and Logistics."

The alliance with Singapore aims to adapt Guanajuato's business models to the logistics and supply chains, for which Singapore is a specialist. While investment is not the primary objective, the collaboration with Singapore is expected to generate investment and development in Guanajuato.

Mexican and Singaporean public officials, as well as representatives and directors of the parastatal company SCE, will work together to generate investment and trigger development in Guanajuato during their visit to the Asian country this week.

The industrial real estate market in Guanajuato has shown stability and a positive investment outlook in the last two years. According to SiiLA Market Analytics, the market has witnessed increasing tenant arrivals and positive net absorption. The market supply of new inventory is recovering after the pandemic, with a low availability rate (3.7%) at the end of 2022.

The automotive and parts companies make up 59% of the companies located in the state, making Guanajuato's market a recipient of vehicle and parts companies. In the transportation and logistics sector, the fifth most important sector in Guanajuato's industrial market, the number of tenants increased by 7% between 2021 and 2022. Moreover, the area occupied by logistics and transportation companies grew by 2% in the same period.

The Logistics Hub Premier project aims to boost the agricultural, construction, industrial manufacturing, and 4.0 industries, requiring excellent connectivity between the Guanajuato market and the rest of Mexico. The Silao-San Miguel de Allende highway construction is planned to turn Guanajuato into a national logistics hub this year, with an investment of over 3.5 billion pesos.

To learn more about Mexico's commercial real estate market, visit SiiLA or write to us at contacto@siila.com.mx.