The recent reforms to the "Building Regulation for the Federal District" will bring about significant changes to the operation and development of shopping centers in Mexico City. These new rules, while mandating exclusive parking areas for delivery personnel and streamlining minor repairs and improvements, also present opportunities. They promote solar energy usage, aiming to make shopping centers more efficient and sustainable, which can lead to long-term cost savings and a positive environmental impact.

According to the decree published in the "Official Gazette of Mexico City," starting May 9, 2024, shopping centers must provide free, exclusive parking for bicycles and motorcycles used by delivery personnel. These spaces will be equipped with WiFi, appropriate signage, and areas for storing helmets and backpacks. This not only enhances delivery logistics but also improves the consumer experience, potentially leading to increased customer satisfaction and loyalty.

While creating exclusive parking areas might increase operational and maintenance costs for shopping center owners, the benefits for mobility and customer fulfillment could be significant, translating into a substantial economic boost.

Since the arrival of the first delivery platform in 2012 until 2020, the number of delivery personnel in Mexico grew by 150%, reaching almost 250,000 nationwide. By 2025, this number is expected to exceed 330,000, a nearly 240% increase in 13 years. This trend mirrors the growing demand for delivery services, making these new regulations crucial to keep pace with market needs. The demand for delivery services parallels the growth of e-commerce, which has been vital for developing omnichannel strategies in shopping centers. Adapting to this trend is not just a choice but a necessity for the survival and growth of shopping centers in Mexico City.

Currently, Mexico City has about 3.5 million square meters of Gross Leasable Area (GLA) in shopping centers. Over the last four years, this GLA increased by 14% in the city, according to SiiLA data. 

The profitability of these shopping centers has depended on infrastructure adaptations to new consumer dynamics, where many physical stores have transformed into large showrooms for products purchased online, in a context where more than 70% of Mexicans shop on digital marketplaces. In 2023 alone, the retail sector's online sales value in Mexico exceeded 37 billion dollars, a 24.6% increase from the previous year. This growth highlights the importance of integrating comprehensive logistical solutions in shopping centers, which must now adapt to an increasingly digitalized environment focused on fast and efficient deliveries, especially in the food and beverage sector, which saw a 13% increase in GLA over the past year.

Notably, the food and beverage sector strengthened following the pandemic, with a reduction in its vacancy rate (currently below 25%) in shopping centers and a noticeable diversification in the types of occupied premises, including traditional spaces in food courts, kiosks, and more recently, outlets focused on online sales in basements and parking areas.

Other Changes to Come

The reforms to the Building Regulation also facilitate minor repairs and improvements on secondary public roads near shopping centers and the installation of telecommunications infrastructure; all managed through a digital platform. This administrative simplification promises to speed up projects and enhance the accessibility and urban aesthetics of these commercial spaces in a scenario where the digitization of procedures, such as alignment requests, construction licenses, and project completion notices, has become an essential tool for reducing bureaucracy, increasing transparency in real estate project development, and streamlining the construction and remodeling process, facilitating investment in the commercial real estate market.

Moreover, requirements have been introduced to include solar energy systems in new construction projects, ensuring that the infrastructure effectively complies with legal provisions and, consequently, takes actual actions to mitigate the carbon footprint in the real estate and construction sectors.

The reforms to the Building Regulation represent a mix of opportunities and challenges for the commercial real estate market in Mexico City. While change may entail additional investment costs, the regulatory improvements aim to ensure conditions that promote the quality and accessibility of properties.

For more information on this and other commercial real estate market topics, explore SiiLA REsource or contact us at contacto@siila.com.mx.