ProximityParks, a developer of last-mile logistics industrial warehouses in Mexico, has expanded its holdings adjacent to its ProximityParks Monterrey Centro industrial park in Nuevo Leon. Acquired during the fourth quarter of 2023, these properties will triple the company's logistics complex footprint. According to the firm, the expansion includes two additional development phases, each spanning four hectares (40,000 square meters), bringing the total area of ProximityParks Monterrey Centro to 12 hectares (120,000 square meters).

According to SiiLA, ProximityParks Monterrey Centro boasts approximately 20,000 square meters of industrial gross leasable area (GLA) and nearly 2,000 square meters of office space on a 39,000 square meter site. To date, the developed area has achieved LEED BD+C certification.

This latest transaction is part of ProximityParks' publicized plans to invest eight billion pesos (around 445 million dollars) from 2023 to 2027. Last year, in an interview with El Economista, Jaime Guerrero, CFO and co-founder of ProximityParks, revealed that the company aims to triple its property portfolio nationwide from 11 to about 30 over the next four years.

In mid-2023, the company introduced ProximityParks Lomas Verdes, an industrial park with over 14,000 square meters of GLA on a 24,000-square-meter site in Naucalpan, Mexico. According to SiiLA, the developer concluded 2023 with more than 100,000 square meters of GLA distributed in the Mexico City, Guadalajara, and Monterrey markets, predominantly class A, including three industrial parks with sustainable certifications.

ProximityParks' portfolio is distinguished by properties in strategic locations with high demand, access to major communication routes, and proximity to urban and consumption centers. These features are critical for the efficiency and sustainability of last-mile logistics operations. That's why the company continually seeks to strengthen and expand its infrastructure in areas of high urban and commercial density. With this latest expansion, ProximityParks Monterrey Centro is poised to become Mexico's largest industrial park for last-mile logistics.

It's worth noting that ProximityParks aims to increase its GLA in the northern region of Mexico, which is experiencing significant demographic and economic growth fueled by nearshoring. This is especially noteworthy considering that, according to SiiLA data, over half of the firm's portfolio is concentrated in the Mexico City metropolitan area.

Monterrey's Industrial Development

Over the past four years, Monterrey's industrial real estate market has grown substantially. SiiLA Market Analytics data shows a 30% increase in GLA, a 60% decrease in vacancy rate, and a 34% rise in market prices per square meter (including maintenance costs) during this period. This growth, alongside a tripling in gross absorption and a quadrupling in net absorption, reflects Monterrey's robust expansion, efficiency improvements, and attractiveness to investors and developers.

Despite the steady introduction of new inventory and rising square-meter prices, the significant decrease in the vacancy rate indicates a sustained and growing demand for industrial spaces. This trend may result from factors such as the region's economic diversification, increased manufacturing and logistics due to proximity to the United States, and a favorable foreign investment policy. In this context, Monterrey is emerging as a key industrial hub in North America, offering significant opportunities for large-scale project development and investment in logistics and manufacturing infrastructure.

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