FIBRA Storage Milestones in 2023. “Rio San Joaquin” Branch Operation Begins in Polanco, Mexico City

FIBRA Storage, a specialized trust in developing and leasing mini-storage units, recently opened a new branch in Mexico City. The "Rio San Joaquin" branch in the Polanco neighborhood commenced operations on October 5, 2023.

This property, boasting approximately 7,500 square meters of gross leasable area (GLA), was acquired by the mini-storage units REIT in July 2021, according to data from SiiLA FIBRA Analytics. The acquisition cost FIBRA Storage 70.3 million pesos, including closing expenses.

According to the real estate trust, the Rio San Joaquin branch represents "a hub for the U-Storage brand" and is expected to yield substantial returns. Located strategically in Polanco, part of Mexico City's central business district (CBD), this is FIBRA Storage's twenty-ninth property in operation.

Over the past three years, FIBRA Storage's productive portfolio has increased by 56%. According to SiiLA, between the second quarter of 2021 and the second quarter of 2023, the trust's operational GLA has grown from 99,421 to 155,233 square meters.

2023: A Year of Milestones in the Mini-Storage Business

In the first half of this year, FIBRA Storage's portfolio experienced remarkable growth, reaching record occupancy and net absorption levels. On the one hand, the vacancy rate of the trust's properties reached 82.1%, compared to 79.6% in the previous quarter. This increase is attributed to the overall better performance of the portfolio, reflected in a net absorption of 6,931 square meters, indicating a positive balance between occupied rentable space and rates, as well as increased activity among commercial clients, who increased their participation by 1.2 percentage points.

On the other hand, in the last quarter of this year, four FIBRA Storage branches stabilized, surpassing 85% occupancy, bringing the total number of stabilized units to 16, with another 12, excluding Rio San Joaquin, in the stabilization process.

It is worth mentioning that, pending the inclusion of the Rio San Joaquin branch, which was still under development at the close of the second quarter of 2023, the trust added 3,771 square meters of operational GLA, registering a 2.5% growth compared to the previous quarter. In addition to the increase in rentable square meters due to the expansion of operational branches in Mexico City, such as Tlalpan-Coapa and the recent openings of Mariano Escobedo and Condesa, the REIT's expansion strategy has included the development of the Lerma II property in the State of Mexico.

FIBRA Storage's development plan demonstrates its ongoing growth and success in Mexico's commercial real estate market. For more information about the performance of this and other REITs in Mexico, visit SiiLA FIBRA Analytics or contact us at contacto@siila.com.mx.