Trends and developments in 2023: Retail is recovering in Mexico!

Great news for the retail sector in Mexico! In 2022, the retail industry in the Mexico City and Monterrey markets saw partial recovery due to the sector's adaptation to changing consumer habits and the strengthening of physical outlets and the omnichannel experience.

In these two markets, tenant arrivals increased, primarily driven by the delivery of new inventory, especially in Mexico City, and the occupation or reoccupation of existing spaces. This, along with the gradual incorporation of new inventory and decreased tenant departures, created a favorable environment for net absorption to return to positive territory.

According to SiiLA Market Analytics, Monterrey had five consecutive quarters of positive net absorption, while Mexico City had two in a row by the end of 2022.

Although challenges remain in supply chains, product demand, and global economic conditions, new shopping centers are expected to open and invest in 2023. In this context, SiiLA presents seven retail developments that will stand out this year. Keep an eye on these trends!

In Mexico City's retail market, five developments are projected to be delivered starting this year, located in the Aragon, Coapa, Insurgentes, and Santa Fe submarkets. These are:

Santa Fe District (Mexico City): Developed by FIBRA Uno and E-Group, this mixed-use project will have an area of approximately 100 thousand square meters, including eight towers that will house corporate offices, hotels, a movie theater, 25 restaurants, and 40 stores, among other amenities.

Paseo Coapa (Mexico City): This shopping center, developed by GICSA, will have over 68 thousand square meters of gross leasable area (GLA) and house department stores, food and entertainment businesses, among others.

Paseo Xochimilco (Mexico City): Another attractive property developed by GICSA, this class A+ regional shopping center will have more than 60 thousand square meters of floor space and feature department stores, movie theaters, jewelry stores, and restaurants, among other amenities.

Espacio Condesa (Mexico City): From FIBRA Plus, this shopping center will be part of a mixed-use complex, including office and residential towers. With an estimated GLA of over 38 thousand square meters, the development will feature movie theaters, gyms, restaurants, bars, and fashion boutiques.

Martin Carrera Courtyard (Mexico City): Developed by Estrategia Urbana, Grupo Indi, and PAPE Arquitectura y Diseño, this shopping center will have an approximate GLA of 23 thousand square meters with at least 90 stores. The project will be part of a complex with more than 20 thousand square meters of office space.

In Monterrey, there are two projects in the San Jeronimo-Obispado submarket:

Alaia Cumbres City Center (Monterrey): As part of a mixed-use project with 208 apartments and 172 offices, this development by Quantium Desarrollos and LeNoir y Asociados will be Class A+ and have a GLA of nearly 40 thousand square meters. It will have anchor stores, a food court, and a central plaza.

Paseo Cumbres (Monterrey): Developed by Match Construye, this community center will house apartments, offices, and retail space. The class A+ property, with more than 20 thousand square meters, will have close to 150 commercial areas with luxury stores, restaurants, movie theaters, and even a boutique hotel.

If you want more information and insights on the Mexican commercial real estate market, visit SiiLA or contact us at contacto@siila.com.mx.