FIBRA Storage, a real estate investment trust (REIT) specializing in developing and leasing self-storage units in Mexico, has formally acquired two adjacent properties on Garza Sada Avenue in Monterrey, Nuevo Leon. The REIT paid 54.8 million pesos (over 3.2 million dollars) for this transaction, including closing costs.

This operation reflects the real estate trust's interest in diversifying its portfolio in the northern part of the country, where it recently began investing to take advantage of the storage demand driven by the arrival of companies thanks to nearshoring.

A week ago, SiiLA REsource reported on FIBRA Storage's acquisition of land in Monterrey's "Puerta de Hierro" commercial area. With this move, the company showed interest in expanding its market, which until now has been concentrated in the central and Bajio regions of Mexico. According to SiiLA FIBRA Analytics, around 91% of FIBRA Storage's gross leasable area (GLA) is concentrated in the Mexico City metropolitan area, while the rest is distributed in the Mexican Bajio, mainly in Jalisco and San Luis Potosi.

The company operates its properties under the brands "U-Storage" and "Guardabox" in at least a dozen states. In the north of the country, outside Monterrey, FIBRA Storage has self-storage units in Hermosillo, Sonora.

With its most recent investments, FIBRA Storage demonstrates a long-term vision to establish a network of self-storage units that meet the needs of northern Mexico. This approach could provide competitive advantages, such as reducing delivery times and logistics costs for companies looking to store products near the US border.

FIBRA Storage's expansion into northern Mexico is part of a business strategy that seeks to capitalize on the industrial and logistics boom in the region, driven by nearshoring and local economic growth. According to SiiLA, the corporate and industrial area of the country's north grew the most (+10%) nationally in the last year, with the addition of approximately four million square meters. This growth was mainly due to development in the industrial markets of Ciudad Juarez and Monterrey.

As of the third quarter of 2023, FIBRA Storage's portfolio encompassed almost 168,200 square meters. This implies that last year, the trust's built GLA increased by more than 11,500 square meters, or about 7%, compared to the built GLA in the fourth quarter of 2022. Currently, FIBRA Storage has plans to develop more than 58,600 square meters, which, once built, will represent an increase of almost 35% compared to the built GLA at the end of the third quarter of 2023.

Five years after its creation, the trust has more than 37 owned properties, with a record occupancy of 84.1%, as well as 15 properties with 45,314 square meters operated by third parties. In 2023 alone, the REIT opened at least three new branches and acquired three more properties besides the two in Monterrey in 2024.

For more information on the performance of this and other REITs in Mexico, explore SiiLA REsource or write to us at contacto@siila.com.mx.