Advances, challenges and opportunities of the industrial real estate sector in Mexico I 07 March 2024
March 7, 2024

At the recent meeting of the Mexican Association of Industrial Parks (AMPIP), significant data were presented on the growth and dynamism of the industrial real estate sector in Mexico, reflecting not only solid progress in recent years but also the potential for expansion and the challenges to be faced in the future.

The sector has shown impressive growth in terms of net absorption, with a significant increase from 2.0 million square meters in 2019 to 5.0 million in 2023. This increase reflects a strong and sustained demand for industrial space in the country, driven by a diversification of sectors and the consolidation of Mexico as a strategic logistics center at a global level.

The availability of ready-to-occupy spaces has seen variations, highlighting a notable reduction to 2.1% in 2022, indicating a gradually competitive market and the need to expand the supply of industrial infrastructure. This environment has led to an unprecedented increase in the construction of new industrial parks, from 273 in 2019 to 460 in 2023, with an expectation of adding almost 8 million square meters of new facilities between 2024 and 2025.

The regional analysis shows that northern Mexico continues to be the most dynamic area, accounting for 63.1% of activity, followed by the lowlands-east and the center of the country. In terms of sectors, diverse manufacturing leads demand, followed by automotive, logistics and the growing e-commerce sector, reflecting the evolution of supply chains and consumer preferences.

A crucial issue for the sector is energy management and demand. Industrial parks are large consumers of energy, with demand expected to increase by more than 2.3 GW by 2024. This poses significant challenges in terms of supply, sustainability and compliance with the requirements of the Federal Electricity Commission (CFE), highlighting the need for investments in electrical infrastructure, such as substations and high-voltage lines, and the adoption of clean energy sources.

The main challenges identified, such as the shortage of KVA, deficiencies in distribution and transmission, regulatory barriers that point to the importance of a strategic approach that contemplates sustainability, energy efficiency and technological innovation. The transition to cleaner energy and the optimization of industrial processes will be key to maintaining Mexico’s competitiveness and attractiveness as an industrial investment destination.

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