This year is set to break records for new industrial deliveries in Mexico. During the first half of 2024, nearly 3.2 million square meters were delivered, accounting for 54% of the total deliveries in 2023, the year with the highest volume of new inventory, according to SiiLA. This remarkable performance is just the beginning: an additional 3.5 million square meters are expected to be delivered in the second half of 2024.

Data shows that 210 industrial buildings will be delivered, with 175 of Class A and 35 of Class B, meaning that nearly 95% of the new properties’ gross leasable area (GLA) will meet high-quality standards. These buildings will be distributed across the country’s major real estate markets, particularly in the northeast (such as Monterrey, Reynosa, and Saltillo), the central region (Mexico City and its surrounding area), and the northwest (such as Ciudad Juárez, Mexicali, and Tijuana), which will account for 31%, 28%, and 24% of the GLA under development, respectively.

Analyzing the size distribution, we see an interesting diversification reflecting demand for medium and large spaces, between 7,000 and 20,000 square meters.

However, properties between 3,000 and 7,000 square meters represent the highest number of new deliveries, with 50 units, while the largest ones, those over 20,000 square meters, total 44 units. This size range indicates a robust demand in multiple market segments. The high number of medium and large warehouses suggests increased demand from manufacturing and logistics companies requiring substantial space for their operations. On the other hand, facilities between 3,000 and 7,000 square meters are particularly relevant for the last-mile segment, essential for the final delivery of products in the supply chain. These properties, strategically located near urban centers, enable fast and efficient distribution, which is crucial for e-commerce and other sectors demanding rapid deliveries in urban areas.

The Largest Deliveries

According to SiiLA Market Analytics, the four largest developments will account for 15% of the industrial GLA to be delivered in the second half of 2024. One is the Nave V of the Plataforma Logística Arco Norte (PLAN) by the Mexican department store chain, El Puerto de Liverpool. This 185,000-square-meter property in Jilotepec, Estado de México, is the second-largest warehouse in an 800,000-square-meter project set to be completed in the next three to four years.

The second-largest property is Nave 3 of the T-MEX Park in Nextlalpan, Estado de México. This building, over 140,000 square meters, is the third-largest in a 1.5 million-square-meter project to be completed by 2027.

In third and fourth place are two warehouses in Cuautitlán Izcalli, Estado de México: Nave 1 Danhos Industrial Cuautitlán, over 100,000 square meters, representing about half of a two-building Class A project, and Nave 3 Panorama Industrial Nodín, which, at over 99,000 square meters, is the largest building in a three-development project with a combined GLA of more than 207,000 square meters to be delivered between this year and the next.

The remaining new inventory to be delivered in the second half of this year totals 14,500 square meters, with warehouses ranging from 2,000 to 80,000 square meters. However, considering the four giant warehouses in the Mexico Valley conurbation, the average size exceeds 16,700 square meters, the highest level for a semester since the second half of 2022, when the average delivery area was nearly 17,400 square meters.

Despite temporary absorption slowdowns and limited availability of industrial-zoned land, the massive delivery of new industrial spaces in 2024 underscores the resilience and adaptability of the Mexican market. The diversification in the size and location of these new warehouses is a strategic response to changing logistical and manufacturing needs. This approach ensures that Mexico remains a key player in the global supply chain and positions the country to capitalize on future growth opportunities, even in an environment of limited infrastructure and high competition for suitable land.

For more information on the performance and development of the Mexican industrial real estate market, explore SiiLA REsource or contact us at contacto@siila.com.mx.