What is a Pocket Park? Discover the Urban Transformation in the Industrial Real Estate Sector of Mexico

The "pocket park" concept has become increasingly common in the industrial real estate market. A pocket park is a compact industrial park strategically situated within manufacturing and logistics centers or close to major communication routes. Sometimes, these pocket parks are delineated zones within larger industrial parks. Their primary purpose is to blend industrial activity with urban zones, consolidate a company's property portfolio, or even foster economies of scale and business synergies for competitive advantages, promoting productivity and collaboration across sectors.

The "pocket park" notion gained traction in the 1960s to describe small public spaces (less than 4,000 m²) within densely populated urban areas. However, the concept has evolved over the past decade to signify smaller-than-conventional industrial parks. In Mexico, the average industrial park covers an area of 140,000 m². Nevertheless, to qualify as an industrial park, a space should encompass a minimum of 100,000 m² of developed area and, ideally, an additional 100,000 m² for future expansions, as stipulated by the Mexican Standard for Industrial Park Classification (NMX-R-046-CSFI-2005).

In Mexico, pocket parks typically occupy a space comparable to or smaller than a third of a conventional industrial park's area. Examples of such industrial complexes include the Aeropuerto, Escobedo, Leon, Norte, and Oriente pocket parks by GP Desarrollos, with gross leasable areas ranging from approximately 12,500 to 100,000 m² each, distributed across Guanajuato and Monterrey, according to SiiLA data. 

Compact and Convenient

Pocket parks offer a range of advantages for both businesses and the urban areas they inhabit. These benefits encompass optimized space utilization, reduced environmental impact by concentrating industrial activities, promoting collaboration among nearby or related enterprises, and the potential to leverage shared infrastructure and services, including transportation and logistics. However, the following features stand out:

1.- Adaptability and Flexibility: A compelling aspect of pocket parks is their ability to adapt to evolving business needs. Due to their compact nature compared to traditional industrial parks, they can be more agilely reconfigured to accommodate new industries, emerging technologies, or shifts in market demand.

2.- Sustainability and Urban Design: Pocket parks can contribute to urban sustainability by integrating industrial activities into existing urban areas, reducing the need for outward expansion. Furthermore, their design can incorporate sustainable practices and technologies, such as energy efficiency, waste management, and conservation of natural resources, often at a lower cost, especially within larger industrial parks equipped with essential services and infrastructure.

3.- Collaboration and Networking: The physical proximity of diverse companies within a pocket park encourages industry players to interact and network. This fosters opportunities for collaboration, knowledge exchange, and the creation of synergies that drive innovation and joint development.

Pocket parks have undergone significant evolution within the industrial real estate market. These spaces seek to harmoniously integrate industrial activity into urban environments, yielding notable competitive advantages. Their inherent flexibility and convenience are pivotal in transforming how businesses operate and interact within industrial and urban landscapes. For further insights into the commercial real estate market's development, trends, and properties in Mexico, we invite you to explore SiiLA REsource or contact us at contacto@siila.com.mx.