Mar 062014

In The market for commercial and industrial real estate in Mexico, we looked at a recent snapshot of the industrial real estate market in the last quarter of 2013, and saw how cities in the Bajío Region were outpacing cities in Central Mexico or Northern Mexico. (The snapshot came from the report ‘Industrial Markets in México (Q4 2013)‘ by Jones Lang LaSalle, a global real estate services firm.)

In this post, we take a look at the “Industrial Property Clock” for the same period, from the same report.

Industrial property clock (Jones Lang LaSalle)

Industrial property clock (Jones Lang LaSalle)

In general, cities in Central Mexico and in the Bajío are well “ahead” of cities in northern Mexico on this clock. The analysis by Jones Lang LaSalle suggests that the commercial and industrial property markets in Mexico City, Guanajuato, Guadalajara, San Luis Potosí, Puebla and Toluca are “peaking”. The two remaining cities in the Bahío (Querétaro and Aguascalientes) are joined by several cities in northern Mexico in the “rising market” portion of the graph, while Reynosa, Matamoros, Nuevo Laredo and Chihuahua are anchored in the “bottoming market” portion.

The following quotes are taken from the report:

Mexico City’s industrial market grows its footprint annually; rents have grown to pre-crisis levels

Puebla market is very tight; land is scarce and vacancy is at a low

Toluca market has been growing as an alternative to Mexico City, it is also attracting local businesses

Guanajuato is growing in several submarkets like Silao and Celaya thanks to car manufacturing and food related businesses

Guadalajara keeps occupying space and growing at El Salto and South Periférico

San Luis Potosí keeps attracting new industries related to consumer goods. The car manufacturing industry is taking advantage of the city’s communications and infrastructure

Querétaro has been active inaugurating new developments near the airport both for the aerospace business and for car manufacturing. These industries have taken advantage of the local educated labor force

Aguascalientes seems to be the new frontier for developers: at least three major national developers have inaugurated parks in this market, one of them is Nissan’s supplier park

Tijuana continues its path towards quickly becoming a speculative development marketplace once again. It is the first border city to regain this business climate

Nogales, the smallest of the Northwest Border region cities, is also enjoying the expansion of Kimberly Clark (KCI) leasing vacant space within the Nuevo Nogales Industrial Park

Ciudad Juárez keeps lowering the existing vacancy rate

Monterrey submarkets have been improving, especially Apodaca and Santa Catarina, where land prices and rents are growing

Nuevo Laredo, Reynosa and Matamoros have seen a slow down in their activities, however, tenants have stayed at their buildings; there are no new developments on the horizon and vacancy rates are around 10%

Related posts:

  One Response to “Trends in Mexico’s commercial and industrial property markets”

  1. Dear Concerned,
    My name is Ruben L. Ruiz. I am a businessman who owns property just east of Agua Prieta, Sonora, Mexico. There are plans to make Agua Prieta a future hub of shipping to eastern and northern United States. Agua Prieta is on the border next to Douglas, AZ. U.S.A.
    Upgraded highways,
    industrial complexes and more energy are all planed for the area.
    It will be a boon for the region.
    Much investment will be procured for the area. I own 10,000 acres just 8 miles from Agua Prieta. I was recently offered a business plan from a European company for sustainable energy. During negotiations the company went under. They were offering wind power to provide electricity to the area. Their plans were to offer electricity to both sides of the border.
    My real estate is perfect for wind or solar energy. Carretera dos (Highway 2) runs through the property and allows access to the demographics of need for energy for such a business process. I am in the initial process of finding a commercial real estate business or a energy company to take this opportunity.
    I have a partner who is my brother and we have a lawyer. Sonora has a less stringent law for an environmental impact study. This offers a fast track to making a business deal.

    My email is-
    Please feel free to contact me.

    My best,
    Ruben L. Ruiz

Sorry, the comment form is closed at this time.