Logistics operations increase search for industrial spaces

By Editorial

Mexico City

August 29, 2022

In the first quarter of 2022, there was a 42% increase in the demand for spaces for industrial activities compared to the same period in 2021, according to reports from Newmark Latin America.

The market analysis company indicated that the main causes of growth in demand figures for buildings for the sector were:

  • Increase in e-commerce operations
  • Trend towards regionalization in global value chains
  • Effect of the impact of Covid-19 on the disruptions of the Chinese market

 Newmark highlights that there was a strong increase in requests for industrial warehouses for storage of products and transformation processes .

"At the end of the first quarter, 944,000 square meters were absorbed throughout the country, we expect that at the end of the second quarter of the year the record will be similar," explained Erick Brunet, director of Global Corporate Services transactions at the firm.

Logistics has experienced an increase in activity in the industrial park in Toluca , as well as in areas of the State of Mexico, Bajío and Guadalajara due to changes in consumer trends related to e-commerce, which has led to new requirements in distribution centers .



Lamudi reported in its 2021 Real Estate Report that the growth of the industrial sector began to gain strength in 2020 and exceeded 7% in 2021, registering an increase in demand of 1.7% in the period that has elapsed since 2022 . It is appreciated throughout Mexico, but the greatest impact is registered in markets such as Monterrey, Tijuana and Ciudad Juárez, he indicates.



E-commerce and the boost it causes in logistics activity is not the only reason for the increase in demand for industrial buildings today: the relocation of companies caused by the reorganization of value chains also impacts the search for spaces by companies. 

On this point, the Undersecretary of Finance and Public Credit , Gabriel Yorio, indicated that industrial demand is increasing due to relocation operations related to nearshoring . The figures "are proof that Mexico is one of the countries with the greatest advantages in this phenomenon of transition between globalization and regionalization," he argues.

Mexico is among the countries with the greatest potential to benefit from nearshoring as a strategy, according to data from the Inter-American Development Bank (IDB), which has projected potential profits for the country in the order of 35 billion dollars , about 2.6% of the Gross Domestic Product , thanks to new merchandise exports.

Among the advantages that Mexico offers to foreign companies that can establish their plants in the country as a result of nearshoring are:

  • Lower labor costs
  • Lower logistics costs
  • Fast and secure supply chains
  • Direct communication, with less time difference
  • Skilled labor
  • Developed industrial sector
  • Class A Infrastructure
  • reduced taxes
  • lower tariffs
  • Intellectual property protection

At Frontier Industrial we are attentive to market trends and their growth areas . For this reason, our portfolio of industrial parks in Mexico offers the development of customized projects for logistics and manufacturing, and the best infrastructure to house innovative global companies . Meet him.





TEL: 800 0027-842

Share this post: