Revolutionizing the Mexican Industrial Landscape: How E-commerce is Transforming Retailers' Strategies

E-commerce in Mexico has experienced significant growth, leading to a higher demand for logistics spaces and warehouses. According to data from SiiLA Market Analytics, the industrial space occupied by e-commerce companies has nearly tripled nationwide in the last three years. The pandemic accelerated this trend, which prompted retailers to boost their online sales.

A prime example of this growth is Mercado Libre and Amazon, two leading e-commerce platforms in Mexico and globally. Between the first quarter of 2020 and the first quarter of 2023, these companies absorbed almost 900,000 square meters of space nationwide, encompassing warehouses and service points ranging from 1,000 to 100,000 square meters.

Overall, e-commerce companies have chosen to establish themselves in the Central region of Mexico, specifically in the logistics corridor of Cuautitlan, Tultitlan, and Tepotzotlan (CTT) in the metropolitan area of Mexico City. This corridor connects the large warehouse areas of Mexico's Northern and Bajio regions with last-mile warehouses in Mexico City. According to SiiLA data, in the last three years, the Central region accounted for 54% of the industrial area absorbed by e-commerce companies. After the Central region, Northern Mexico was the second region with the highest absorption, concentrating 25% of the space absorbed by new arrivals or expansions. In this regard, Mexico City and Monterrey are the markets with the highest presence of companies providing online commerce services.

In Mexico, the e-commerce sector plays an increasingly important role in the demand for industrial spaces and the national economy. Currently, over 13% of retail sales in Mexico come from online sales. In 2022 alone, the value of the e-commerce market in Mexico reached 528.1 billion pesos, a 23% increase compared to the previous year, according to data from the Mexican Association of Online Sales (AMVO).

The momentum of e-commerce anticipates significant changes in the Mexican industrial market. As retailers continue to boost their online sales, the demand for logistics spaces is expected to increase, and physical stores will be used more as exhibition spaces rather than points of sale. In this context, the logistics infrastructure is anticipated to be expanded to reduce delivery times and enhance the customer experience.

To learn more about commercial real estate trends and the emerging industrial sectors in Mexico, visit SiiLA or contact us at contacto@siila.com.mx.