Mexico's Bajio region kicked off the year with investments from over 90 companies, including major multinational firms such as Kohler, Michelin, Foxconn, DHL, and Barcel. These arrivals and expansions represented about 60% of the gross absorption of industrial buildings nationwide during the first quarter of 2024, surpassing the levels seen in the same period in 2023, when the Bajio accounted for about 22% of such absorption, according to data from SiiLA.

Within the Bajio, three markets—Guanajuato, Guadalajara, and Queretaro—recorded 24%, 14%, and 13% of the national absorption, amounting to nearly 700,000 square meters. This absorption level threefolds what was observed a year earlier, underscoring these regions' appeal as part of Latin America's critical logistics and manufacturing hub. The demand for industrial space in the Bajio has been driven by several factors, including the diversification of supply chains, government incentives for foreign direct investment, and a growing infrastructure of communications and transportation that facilitates distribution and commerce operations.

In Guanajuato, the absorption was dominated by construction companies (56%) and vehicles and parts (31%). In Guadalajara, the occupation was notable among electronics (40%), health (25%), and manufacturing (21%) companies, while in Queretaro, packaging (23%), electronics (21%), and business products and services (15%) enterprises prevailed.

Among the most significant absorptions were those by the American manufacturer Kohler and the French automaker Michelin, which absorbed 140,000 and 80,000 square meters in Guanajuato, respectively, as well as nearly 37,000 square meters in Guadalajara by the Chinese tech services firm Foxconn, and over 33,000 square meters by the American security services provider, Allegion.

It is important to note that, in these three markets with the most national absorptions during the first quarter of 2024, the occupation of high-quality spaces prevailed. While in Guadalajara, all the absorbed space was class A, in Guanajuato and Queretaro, the proportion was 87% and 81%, respectively. This trend reflects the demand by companies for facilities capable of supporting large-scale operations with advanced infrastructure.

Despite the significant absorption level, these regions saw an increase in the vacancy rate, which aligns with the upward trend observed nationally within the industrial sector. This increase was due to the delivery of new inventory—especially in Guanajuato and Guadalajara, which set local historical records—and the departure of some tenants, particularly in Queretaro, where about 36,000 square meters were vacated.

Data from SiiLA Market Analytics indicates that the most pronounced increase occurred in Guadalajara, where the vacancy rate rose from 0.7% to 2.9% between the first quarter of 2024 and the immediately preceding quarter. In Guanajuato and Queretaro, more modest variations were observed (3% each). The former rose from 3.3% to 3.4%, and the latter from 5.5% to 5.7%.

The rise in vacancy rates in the Bajio reflects a phase of adjustment following a rapid industrial expansion. This situation could represent business opportunities for investors and companies seeking strategic spaces to start or expand operations. In this sense, vacancy facilitates market entry and allows companies to scale or relocate in a context of high market competitiveness, with challenges of technological innovation and adaptation to increasingly sophisticated demands from companies specializing in key sectors.

For more information about the performance of industrial markets in Mexico, explore SiiLA REsource or contact us at contacto@siila.com.mx.