Industrial Submarkets in Mexico: Low Availability and Competitive Challenges

In Mexico, the industrial sector is facing significant challenges, with over 60 submarkets experiencing a low availability rate. According to data from SiiLA Market Analytics, approximately one-third of these submarkets report a 0% availability rate, a situation that persists in some cases for over a year.

Some of these submarkets are located in northern markets such as Tijuana and Ciudad Juárez, as well as in Guadalajara and Mexico City. Although there are exceptional cases of zero availability in the Bajío region, the trend is more pronounced in other regions.

In particular, Tijuana and Ciudad Juárez have experienced a shift in trend since the second half of last year. Submarkets like the East in Ciudad Juárez and Sánchez Taboada and Tijuana-Rosarito in Tijuana have ceased to register 0% availability, indicating an increase in industrial inventory in these areas.

In contrast, in the northeast of the country, specifically in Monterrey, there is a widespread decrease in the availability rate in its industrial submarkets, although none reach 0%. Saltillo has also experienced a rapid decrease in the last year, leaving its submarket without available spaces and with very few remaining.

It is important to note that a 0% availability rate does not imply that no new industrial spaces have been delivered. According to SiiLA Market Analytics, over 80% of new spaces, whether Build to Suit (BTS) or Specifications (SPEC), are delivered occupied. This fact suggests that demand remains high, and the absorption rate exceeds that of deliveries.

However, the low availability directly impacts industrial space rental prices, leading to an increase that affects the competitiveness of businesses. Additionally, property owners experience an elevation in losses due to uncollected rents.

In conclusion, the low availability rate in Mexican industrial submarkets poses significant challenges for companies seeking to expand or establish themselves in these areas. Competition intensifies, rental prices rise, and property owners face new economic dynamics in a key sector for the country's economic development.

To learn more about this topic, visit SiiLA REsource or contact us at contacto@siila.com.mx.