September 5, 2023 | #DatozByDatoz
Real Estate Investment Trusts (Fibras), with a focus on the industrial segment, have the potential to develop over 40 million square feet (ft2) on their land reserves in the northern, Bajio, and central regions of the country.
These reserves are crucial for addressing the growing demand in the country driven by nearshoring, electromobility, e-commerce, and other trends in the industrial and logistics sectors.
Fibra Nova, Fibra Prologis, Fibra Upsite, Fibra Macquarie, Fibra MTY, and Fibra Terrafina are the trusts that hold these land reserves. It’s worth noting that Fibra Uno was not considered for this text as it does not specify the proportion of its land reserve dedicated to the industrial segment.
The Fibra with the highest capacity for constructing industrial buildings is Fibra Nova. During the 2Q 2023, it signed a binding agreement to acquire 50 hectares of land reserve in the industrial real estate market of Chihuahua, which could allow for the development of approximately 13.4 million square feet (ft2).
As of June 30, 2023, Fibra Prologis has 18.4 acres of land in Tijuana and Guadalajara, with an estimated developable area of 400,616 square feet (ft2). However, in conjunction with Prologis, the Fibra has a land bank and expansion potential totaling 11.4 million square feet (ft2) of buildable space in the following markets: Monterrey (4.5 million ft2), Mexico City (2.5 million ft2), Guadalajara (2.2 million ft2), Reynosa (1.8 million ft2), Ciudad Juárez (300,000 ft2), and Tijuana (100,000 ft2), as of the end of 2Q 2023.
On its part, Fibra Upsite continues with its development plan, and on its land reserves, it could construct 6.7 million square feet (ft2) of industrial buildings. This Fibra has reserves in the Bajio and central regions, specifically in the markets of Querétaro, Guanajuato, and Mexico City.
As of the end of 2Q 2023, Fibra Macquarie only has land reserves in the northern markets of the country, totaling 2.9 million square feet (ft2) of developable industrial space. In Ciudad Juárez, Fibra Macquarie has the highest building potential with 2.2 million ft2, followed by Tijuana with 406,000 ft2, Monterrey with 210,600 ft2, and finally, Reynosa with 95,400 ft2.
Fibra MTY and Fibra Terrafina also have significant land reserves, although they do not specify the leasable area that can be constructed on these lands. With the acquisition of the Zeus portfolio, Fibra MTY now has a reserve of 9.5 million square feet (ft2) in various markets across the country. Meanwhile, Terrafina holds land in the northern, central, and Bajio regions, totaling 5 million ft2.
These reserves are crucial for the Fibras, as the high demand for industrial spaces has driven an increase in construction projects, whether build-to-suit or speculative. Having these land banks makes the Fibras more competitive in the industrial real estate market.