1 June, 2023 | #DatozByDatoz
Eight Real Estate Investment Trusts (REITs), known as “Fibras,” listed on the Mexican capital market have a portfolio of industrial properties throughout the country. These properties collectively encompassed 18.8 million square meters of gross leasable area (GLA) during the first quarter of 2023, according to data provided by Fibraspy.
By the end of the first quarter of 2023, Fibra Uno, Fibra Prologis, Fibra Terrafina, Fibra Macquarie, Fibra MTY, Fibra Nova, Fibra Plus, and Fibra Upsite reported an average weighted industrial occupancy rate of 98%. This indicates that out of the total inventory, which amounts to 201.9 million square feet (ft2), approximately 4.2 million ft2 are currently available for occupancy.
This occupancy rate represents one of the highest levels ever achieved by the Fibras, as they have consistently set new records each quarter. In comparison to the first quarter of 2022, which had an occupancy rate of 96.5%, there was an increase of 150 basis points. Furthermore, when compared to the first quarter of 2021, the occupancy rate grew by 230 basis points, reaching 98% in 1Q 2023.
In their quarterly reports to investors, the Fibras concur that the industrial real estate segment is still benefiting from the positive effects of nearshoring, particularly in the northern and Bajío regions of the country.
Furthermore, the demand for spaces resulting from nearshoring will continue throughout 2023 and the subsequent years, as it remains a strategic priority for companies in all sectors to relocate their operations.
André El-Mann, CEO at Fibra Uno, mentioned that the transformations occurring in the supply chain necessitate greater investment across various sectors, including industrial real estate. However, this investment is expected to result in long-term growth. El-Mann expressed optimism, stating, “We anticipate this momentum in Mexico for the next 10 or 20 years.”
Fibra Uno is the Fibra with the largest industrial inventory, totaling over 64.6 million ft2. As of 1Q 2023, Fibra Uno achieved an occupancy rate of 97.9%, indicating that 5.9 million square meters were occupied, leaving only 1.4 million ft2 available. This represents an improvement compared to the occupancy rate of 96.5% reported in 1Q 2022.
Fibra Prologis, with a portfolio of 43.4 million ft2, reported an occupancy rate of 98.4% during the specified period, indicating an increase of 80 basis points compared to the previous year.
Despite having the lowest industrial occupancy rate, Fibra Terrafina experienced significant growth of 220 basis points on an annual basis, reaching a rate of 96.9% in the first quarter of 2023.
Fibra Macquarie and Fibra MTY concluded the quarter with an occupancy rate of 98.2% each. These Fibras primarily concentrate their industrial properties in the northern markets of the country.
Fibra Plus concluded the quarter with an occupancy rate of 98.5%, representing an increase of 60 basis points compared to the same period in 2022.
Fibra Nova and Fibra Upsite reached full occupancy with a rate of 100%. Fibra Nova has concentrated on expanding its portfolio through build-to-suit (BTS) projects or customized buildings, while Fibra Upsite has successfully leased its buildings during or shortly after their construction.
Considering everything, the Fibras will continue to invest in their growth in the industrial segment, and we can expect to see occupancy rates consistently above 97%.