Unveiling the Crucial Role of Industrial Property Transactions in Mexico's Economic Development

Industrial property transactions are pivotal in Mexico's economic and commercial development. Over the past 13 years, SiiLA has recorded over 500 class A and B industrial property transactions nationwide. During this period, the average negotiated area was 19,000 square meters, totaling a gross leasable area (GLA) of over 10 million square meters. These transactions could potentially inject an annual economic influx of $350 million, according to SiiLA Market Analytics.

It's worth highlighting the instrumental role of Mexican REITs (or FIBRAs) in this landscape. A remarkable 92% of the negotiated GLA corresponded to portfolio expansions by various institutional players, including FIBRA Uno, FIBRA Prologis, FIBRA Monterrey, FIBRA Terrafina, FIBRA Macquarie, FIBRA HD (a part of FIBRA Plus since 2021), and FIBRA Nova.

In fact, among the ten most substantial transactions in terms of negotiated GLA were four from FIBRA Uno, which added up more than 350,000 square meters to its portfolio; two from FIBRA Prologis, totaling almost 200,000 square meters together; and two from FIBRA Terrafina, which added over 120,000 square meters to its industrial holdings.

Over the last 13 years, transactions predominantly involved premium properties, primarily concentrated in Mexico City. SiiLA data illustrates that 88% of the negotiated GLA is situated in the Central and Northern regions of Mexico, with a significant presence in the metropolitan areas of Valle de Mexico (40%) and Monterrey (15%). Furthermore, the data reveals that 72% of the negotiated area is classified as class A, while the remaining 28% falls under class B.

Regarding the average price per square meter, a noteworthy 36% increase has been observed since 2014. This surge reflects the consistent growth in demand for industrial properties within the context of limited supply in major national markets. Notably, at least one-third of the sold GLA corresponds to build-to-suit (BTS) constructions, underscoring the mounting significance of tailoring properties to meet specific business needs.

Industrial property transactions in Mexico have significantly contributed to the nation's economic momentum. Beyond fueling growth in the industrial real estate sector, these transactions have fostered confidence among institutional investors and pivotal stakeholders in the market.

For those seeking more insights into Mexico's commercial real estate market, trends, and available properties, we invite you to explore SiiLA or to contact us at contacto@siila.com.mx. We're dedicated to providing the knowledge you need to make well-informed decisions.