The gross industrial demand in Mexico City at the end of the first quarter of 2021 exceeds 260 thousand square meters, which reflects an increase of 22% compared to the same period of the previous year. This figure means a recovery from the 17% contraction that had been registered between the first quarters of 2020 and 2019.

The industrial real estate market was one of the most resilient to the crisis that triggered the pandemic worldwide, partly motivated by the growth of the logistics sector in response to changes in consumption and purchasing habits towards digital with home deliveries, because of the difficulty to move due to the risk of increasing infections.

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The demand for industrial spaces closer to the cities with the largest population increased, especially in areas called the last mile, where various food and consumer goods companies sought to minimize their delivery times by optimizing distribution to the end customer.

Regarding the net absorption that incorporates unemployment in a given period, the lowest point in 2020 was obtained in 3Q and subsequently it has been recovering until reaching 207 thousand square meters at the end of 1Q 2021.

Along with the improvement in demand, the average unit rental price has risen until closing in April 2021 at $ 5.54 USD / m2 / month, 1.8% more than the previous month.

These indicators encourage national developers, funds and specialized Reits in the sector to maintain their preference for investing in the capital. It is worth mentioning that more than 460 thousand square meters destined to industrial warehouses are in the process of construction, distributed mostly in the submarkets of Tepotzotlán and Toluca.

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