“Dark Stores” and e-commerce boost warehouse-building demand22/12/2023
The growth in e-commerce buying habits has boosted since the global pandemic in 2020, and, as a trend, it has prompted changes in Mexico’s industrial real estate dynamics, especially in areas near major population centers. The Industrial Park in the State of Mexico is a good example, along with regions close to Guadalajara or Monterrey.Logistics activities have evolved due to e-commerce trends, driven by the demand for warehouses that improve cost management, delivery speed, and customer satisfaction. This new operations schema has spurred the creation of “dark stores”: logistics warehouses used as distribution centers where products are sorted and organized for final delivery preparation.
Such buildings were created in response to the need of numerous property owners to repurpose infrastructure during the pandemic: the closure of offices, in particular, left structures unused, which could be rented out as storage spaces to generate income.
These buildings are closed to the general population but are structures that reduce the time taken to deliver products to final customers and manage inventories. Currently, they’re also transforming the real estate market. Solili says these structures are changing the measurements for square to cubic meters.
In dark store warehouses, space availability is critical to ensure the capability to meet the demands of delivery activities, which keep growing. Considering the available cubic meters of space in a building allows for calculating the best space distribution for the required equipment.
However, not only are the dimensions of the space essential, but the location is also a key factor: without transportation routes available and proximity to urban centers, it wouldn’t be possible to complete the delivery processes promptly.
Although the demand for logistics industrial space has been increasing for a while due to last-mile logistics growth, boosted by e-commerce and nearshoring, the construction of new infrastructure to facilitate nearshoring-driven activities signals the scale that this type of operation is acquiring.
Top reasons for the enhancement of e-commerce activities in Mexico
Mexico’s strategic location is a key factor for major retail and e-commerce companies to optimize logistics activities by establishing distribution centers and logistics warehouses. Mexico’s connectivity allows the country to act as a gate to the United States market and, simultaneously, as a hub for facilitating dispatches of American products to Latin American and Asian countries.
The size of the economy (considered the 16th largest worldwide) enables the country to work with multiple free trade agreements that facilitate commercial and logistics activities. These reasons drive the boost in the demand for industrial spaces and the use of different spaces as dark stores.
Various e-commerce companies, such as Amazon or Mercado Libre, have found opportunities in Mexico to establish their infrastructure and offer services to different countries. From sales to delivery services, the country acts as a platform for improving commercial operations.
Suppose your company is considering relocating operations or establishing a presence in Mexico. In that case, Frontier Industrial offers industrial buildings for rent and land for sale in the country’s most important areas, including the Industrial Park in the State of Mexico. We also develop tailor-made projects (Build-to-Suit). Feel free to contact us to learn more about our services.