Guanajuato's Industrial Market to Break Records in New Inventory in 2023

Guanajuato's industrial market is poised to break records in new construction deliveries in 2023. There are currently 32 projects in the pipeline, 9 in planning stages with another 23 under construction. According to SiiLA his development pipeline includes projects by some of Mexico’s largest industrial players including Advance, Altea Desarrollos, Artha Capital, Lintel, Parqmex, Roca Desarrollos, Stiva, and VYNMSA. Together, these projects will add over 633,000 square meters of inventory, equivalent to 7% of Guanajuato's current total industrial inventory. This amount of new inventory will break the prior record of 436,000 square meters of new inventory set in 2019.

Guanajuato has proven its resilience, rebounding after the global pandemic and continuing to perform well despite the current global economic downturn. According to data from SiiLA Market Analytics, the market recovery began in 2021, with good leasing activity and several new projects breaking ground. The trend continued in 2022, with a doubling of gross absorption (new tenants) and an increase in net absorption (tenants entering market versus leaving). This suggests that not only is the industrial market in Guanajuato retaining its tenant base, but it is also attractive to new companies entering the market.

Furthermore, the availability of industrial spaces in the region has become increasingly low. The Guanajuato market industrial ended 2022 with 96% occupancy, the highest since SiiLA began monitoring the market in 2012. This high occupancy correlates with a growing economy and favorable business climate fostering job creation. According to the Secretariat of Economy, new foreign investments and reinvestment of profits in Guanajuato exceeded the prior record set in 2020, totaling more than USD $1.3 billion in 2022. The increased investments from companies associated with the United States, Japan, and France is significant considering delivery of new industrial inventory actually decreased between 2019 and 2021.

SiiLA’s outlook for the Guanajuato industrial market is overwhelmingly positive given the significant development pipeline and strong demand. Guanajuato developers have focused on delivering high quality assets in order to attract the best tenants, over 95% of new inventory will be Class A+ and A industrial. The development is also highly concentrated in the industrial submarkets of Celaya, San Luis de la Paz, and León where 90% of the new inventory will be delivered.

The concentration of new development can be correlated with the regions' long-standing strength in the automotive and manufacturing industries. Given this Guanajuato has become increasingly attractive to suppliers and related companies that want to establish themselves geographically close to their client base. The Celaya, San Luis de la Paz, and León submarkets offer a variety of real estate options, including industrial parks to build-to-suits with quality services for companies, include on-site security and modern infrastructure.

If you are interested in learning more about Mexico's commercial real estate market, please visit SiiLA.com or contact us at contacto@siila.com.mx.