Industrial Warehouses in Mexico: Which Sectors and Companies Drive the Real Estate Market?

The expansion of Mexico's industrial real estate market holds great significance due to its positive impact on the country's economic development. This market added nearly 4.6 million square meters in the past year, bringing the total industrial inventory to approximately 80 million square meters nationwide, as reported by SiiLA.

The growth of the industrial real estate market is driving foreign investments, fostering job creation, and promoting the development of logistics and transportation infrastructure. Moreover, the industry's shift towards digitalization and automation has led to increased demand for spaces dedicated to distribution centers, storage facilities, and advanced manufacturing. This surge is reflected in the construction of more industrial parks and logistics spaces, particularly in strategic locations close to urban areas and ports, favoring supply chain efficiency and facilitating international trade.

Between the second quarter of 2022 and the same period in 2023, the expansion of the industrial real estate sector was largely driven by growth in the automotive, transportation, logistics, manufacturing, services, electronics, commercial, and e-commerce sectors. These industries accounted for 80% of the square meters absorbed in Mexico during the last year, according to SiiLA Market Analytics.

However, the sectors with the most significant proportional growth were entertainment, manufacturing, agribusiness, and e-commerce, each experiencing an increase between 30% and 40% in market share measured in square meters.

The growth of various industrial sectors in the real estate market is a positive indicator for the country's economy, showcasing increased business activity and diversification in industries expanding their operations in Mexico. Nevertheless, this growth isn't always evenly distributed, as evidenced by ten companies concentrating a fifth of the industrial space absorption, with over 900,000 square meters added to their respective real estate portfolios during the last year.

Mercado Libre and Amazon led the charge. These two international e-commerce conglomerates absorbed nearly 300,000 square meters together. Following these companies were the cellulose products manufacturer Footprint MX and the department store chain Liverpool, each absorbing approximately 127,000 and 121,000 square meters, respectively.

Other companies, such as the Danish specialized transport and logistics firm DSV Global, the electronics companies Molex and Hisense, and the agri-food machinery manufacturer The Toro Company, added between 61,000 and 81,000 square meters each.

Lastly, but no less, the lift platform manufacturer Genie and the automotive giant Ford Motor Company absorbed around 59,000 and 52,000 square meters, respectively.

Do you want to learn more about Mexico's industrial real estate market? If you're a SiiLA customer, visit Market Analytics and explore our latest statistics and analyses. You can also check out SiiLA REsource or contact us at contacto@siila.com.mx.