Mexico’s industrial sector achieved a significant milestone in Q3 2024, breaking growth records with over 115 new facilities delivered. The country’s primary real estate markets combined for more than 2.1 million square meters of manufacturing and logistics infrastructure—a record-breaking figure. This represents a 14% increase over the previous high set in Q4 2023, indicating a robust and accelerating growth trend in the industrial sector.

Although the influx of inventory slightly increased the vacancy rate, primarily due to speculative supply, overall growth is positioning the country for an annual record in new industrial space. By September, nearly 5.4 million square meters had been added, with another 1.9 million square meters expected by year-end, reaching a total of 7.3 million square meters. This annual figure, encompassing over 420 new buildings, is the highest on record by SiiLA and is equivalent to a third of Iztacalco or less than a quarter of Benito Juárez in Mexico City.

Over the last five years, new inventory deliveries have steadily increased, rising from 3.2 million square meters in 2019 to 5.9 million in 2023. If projections hold, 2024 will surpass that last mark by 23%.

Some regions played a particularly prominent role in expanding industrial inventory nationally.

According to SiiLA Market Analytics, northern Mexico was the fastest-growing area in Q3, accounting for 56% of the country’s newly delivered gross leasable area. Monterrey stood out within this region, breaking its record by adding over 640,000 square meters to its inventory. This growth was driven by two major projects, each over 70,000 square meters: the Kawasaki plant in Interpuerto Monterrey and Kohler’s expansion in the Guadalupe submarket.

Beyond Monterrey, the following cities also stood out: Mexico City, with approximately 380,000 square meters delivered; San Luis Potosí and Ciudad Juárez, each with over 220,000 square meters; Tijuana, with nearly 200,000 square meters; and Guanajuato, with around 130,000 square meters.

The appeal of these locations extends beyond logistical connectivity; it lies in their ability to provide “next-generation” industrial spaces that meet the demands of major global corporations—from plants with automated processes and design flexibility to warehouses with advanced e-commerce technology.

This level of specialization caters to both local demand and Mexico’s strategic role in Western Hemisphere supply chains.

Throughout 2024, key sectors such as vehicles and parts, consumer goods, electronics, transportation and logistics, capital goods, and healthcare have driven three-quarters of absorptions, boosting occupancy in new industrial facilities nationwide and creating a growing opportunity for tailored space offerings.

In Q3 alone, over 70% of new facilities came to market already occupied, mainly through build-to-suit projects and pre-lease contracts, a clear indication of the market's stability and the confidence of investors in the industrial sector. This category includes the largest facilities, as large-scale developments tend to be tailored to each company’s requirements. However, additional analysis shows that the quarterly mode—the most common size among deliveries—was approximately 11,000 square meters, pointing toward a supply focus on medium-sized warehouses. Much of the current vacancy is tied to average absorptions of 12,200 square meters in the third quarter, according to SiiLA, highlighting a supply-demand mismatch in some areas of the country.

For more insights on industrial real estate trends and the latest sector movements, explore SiiLA REsource or contact us at contacto@siila.com.mx.