FIBRA Prologis Invests $190M in Mexico City, Adding 139,000 m² of Industrial Space to Its Portfolio

FIBRA Prologis continues to expand in Mexico following its majority acquisition of FIBRA Terrafina in August. Today, the real estate trust announced the purchase of an industrial park in Mexico City. The acquisition of the O'Donnell Puente Mexico industrial park, which includes eight buildings spanning 139,354 square meters, was completed for $190.1 million, including closing costs.

According to the company, the properties are fully leased, with most contracts in U.S. dollars, to clients in strategic sectors such as third-party logistics (3PL), light manufacturing, and e-commerce—key sectors driving Mexico's industrial growth. Data from SiiLA indicates that top tenants in the industrial park acquired by FIBRA Prologis include prominent multinational companies such as Bericap, Kuehne + Nagel, Moller Maersk, and Shopee.

This acquisition strengthens FIBRA Prologis' position in Mexico's industrial real estate market and aligns with its expansion strategy in key markets like Mexico City, the country's largest consumption center.

Data from SiiLA FIBRA Analytics and the trust indicate that more than a third of FIBRA Prologis' national industrial gross leasable area (GLA) is in the Mexico City metropolitan area. With the acquisition of the O'Donnell Puente Mexico industrial park, located in the CTT submarket (Cuautitlán, Tultitlán, and Tepotzotlán), and the recent addition of at least 14 properties from the FIBRA Terrafina portfolio, which totals more than 360,000 square meters, FIBRA Prologis has become one of the largest property owners in the CTT. These new properties (from Terrafina and O'Donnell) would increase FIBRA Prologis' GLA in the Valley of Mexico by 32%. Key properties in the trust's CTT portfolio include the Tres Ríos, Prologis El Grande, and OCPL industrial parks, with the latter acquired from Terrafina.

CEO of FIBRA Prologis, Héctor Ibarzabal, highlighted that purchasing this industrial park is part of the company's growth strategy, focusing on acquiring assets in high-demand markets and generating value from positive market dynamics. Currently, Mexico City is the trust's largest market, and this acquisition strengthens its presence in one of the most important logistics and manufacturing corridors in Mexico, the CTT.

It is worth noting that, with over 8.1 million square meters of industrial space, the CTT submarket is the largest in Mexico, surpassing even Apodaca, Nuevo León, which has more than 6.6 million square meters. The CTT stands out for its class-A developments and strong presence of transportation, logistics, and consumer goods companies, representing 44% of the occupancy. Additionally, its extensive road accessibility, including the Mexico-Querétaro Highway and the Circuito Exterior Mexiquense, facilitates connections with central Mexico and significant export ports.

According to SiiLA Market Analytics, this submarket is one of the most in-demand nationwide, with vacancy rate below 1% and absorption levels that typically exceed new inventory deliveries, maintaining high occupancy rates and driving rental prices upward. However, since late 2023, a slight uptick in vacancies has been observed due to tenant turnover and a moderate increase in new inventory, although this remains limited compared to previous years' deliveries.

FIBRA Prologis' expansion in the CTT is not just a reaction to the growing industrial market. It's a strategic response to the ongoing supply-demand tensions, positioning the company in a scenario where long-term planning will be crucial to maintaining competitiveness.

For more insights on the development and performance of the industrial market in Mexico, visit SiiLA or contact us at contacto@siila.com.mx.