Mexico City becomes the largest market in the heart of the country
By Perla Eunice
August 3, 2022
The Metropolitan Area of the Valley of Mexico is the most important economic center in Mexico and one of the most prominent in Latin America; it represents 25% of Mexico's gross domestic product, according to Marcos Álvarez, CEO of Market Analysis. He reported that Mexico City was the largest industrial absorption zone in the heart of the country and the second largest nationwide, with a gross absorption of 5.85 million square feet.
During the second quarter of 2022, the city achieved 1.94 million SF in speculative building construction and 452,00 SF of BTS. Cuautitlan led the growth, with 16 of the 38 transactions in the quarter (equivalent to three million 158,205 SF), followed by Tepotzotlan, with nine transactions (equivalent to one million 350,723 SF), and Tultitlan, with four transactions (equivalent to 726,002 SF).
Among the most representative transactions involved are Ford with 538,200 SF BTS for manufacturing and 313,186 SF of inventory for manufacturing, Nadro with 452,000 SF BTS for logistics, Ademsa with 388,649 SF of inventory for logistics, and GAIA with 382,179 SF of inventory for manufacturing. Developers involved in these projects were CPA, Panorama Industrial Tussie, Shabot and BTSD; in the industrial parks Stand Alone, Panorama Cuautitlán, World Park Tultitlán, El Peral Logistics Park and BTSD Cuautitlán.
SUPPLY CHAIN HEADQUARTERS AND THE AUTOMOTIVE INDUSTRY
The industries with the largest share of absorption during the second quarter of 2022 were supply chain (32%) and automotive (28%); followed by chemicals and pharmaceuticals (11%), furniture (8%), electrical-electronics (8%), consumer products (6%), e-commerce (6%), and food and beverage (one percent). Mexican companies accounted for more than half of the total square footage (56%), followed by the United States (29%). Countries such as China, Spain and Germany also participated with nine, three and three percent, respectively.
The CEO of Market Analysis stressed the advantages of Mexico City as a major space for logistics. Logistics was the main use in all submarkets (Cuautitlán and Tepotzotlán stand out); in some, such as Tutltitlán, Tultepec and Tlalnepantla, it was the only one.
"Distribution and logistics both play an important role in Mexico City's economy. The reconfiguration of the supply chain, encouraged by the significant growth in e-commerce, are key in this matter," he concluded.