Mexico City is the largest and most dynamic industrial real estate market in the country. Occupying an industrial building in this market is of utmost importance for logistics companies, primarily, and light manufacturing, as it directly supplies more than 20 million consumers. Additionally, it serves as the distribution point for cities in the south-southeast of the country.
In light of this, the asking price dynamics for industrial buildings in Mexico City continue to rise. The high demand, limited availability of spaces, and the increased value of land contribute to this trend. Additionally, factors such as generalized inflation in construction material prices, interest rates, among others, play a role in this increase.
The industrial real estate market in Mexico City closed 2023 with a 22% increase in the asking price for industrial buildings. This increase positioned the price at $0.78 USD per square foot per month. By the end of 2022, the price was $0.64 USD per square foot per month, according to information from Analytics 2.0.
It should be noted that the submarkets or corridors in the center of the metropolis reached the highest prices. For instance, Naucalpan’s price was positioned at $1.10 USD per square foot per month, Vallejo was quoted at $1.09 USD per square foot per month, and Centro at $1.06 USD per square foot per month.
The prices are higher in these corridors because they have the best locations for e-commerce operations, and the demand is high. Also, in these areas, old industrial spaces or those used for other purposes are being converted into state-of-the-art industrial buildings, which also increases the prices.
With everything considered, Mexico City positioned itself as the market with the highest asking prices in the country. Additionally, this is the highest price and price increase since Datoz has been keeping records. It’s important to remember that the increase in prices began to accelerate in 2020, driven by new trends catalyzed by the COVID-19 pandemic, such as nearshoring and e-commerce.
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