2022, a favorable year for the industrial market in the central region of the country: Newmark

For the industrial real estate market in the Metropolitan Zone of the Valley of Mexico and the Valley of Toluca, 2022 was a favorable year, since historic occupations were reached, record figures in availability, in addition to the fact that inventory increased.

According to the latest Newmark report, the inventory of these two regions was 3.6 million square meters (m²), which meant an annual growth of 4.7 percent.

According to the executive director of the Newmark industrial sector, Patricio Domínguez Patlán, during the past year the spaces under construction responded to the trend of market dynamism and the rise of the industrial logistics sector.

The specialist explained that the corridors with the largest area under construction correspond to Cuautitlán, Toluca and Tultitlán, with surfaces that, together, exceeded 300,000 m².

In terms of net absorption, in the last quarter of 2022, 69,831 m² were reported in the Metropolitan Zone and 31,030 m² for the Toluca Valley, reaching 100,861 m², with an annual net absorption of 302,935 m².

“Regarding the vacancy rate, the fourth quarter of last year closed at 0.9% in the Metropolitan Zone of the Valley of Mexico and 3.5% in the Toluca Valley, giving a joint vacancy rate that closed at 1.3%, one point percentage less than the previous quarter”, referred to the company’s analysis.

Throughout the year 2022, the upward trend in prices was also noted in the Valley of Mexico, for the fourth quarter of 2021 it was reported at 5.54 USD/m²/month, while during the last quarter of 2022 it closed at 7.01 USD/m²/month.

Panorama 2023

Regarding the projections for 2023, Patricio Domínguez explained that the shortage of available space may continue.

“The panorama of the industrial market in Mexico City and the metropolitan area is increasingly complicated and challenging, mainly due to the scarcity of land to develop, the obtaining of permits and construction licenses, the increase in construction costs and the the continuous demand for industrial spaces”, he stressed.

These factors, he said, can directly affect the supply and availability of ships, added to the fact that there probably will not be enough product to satisfy market demand.

“We believe that the trend of increasing rental prices will continue during 2023,” added Domínguez Patlán.