Build-to-Suit in Mexico can boost the logistics growth

The nearshoring dynamics have transformed the landscape of industrial real estate. The surge in logistics has propelled demand for industrial spaces in major cities, prompting developers to enhance their offerings with tailored infrastructure through Build-to-Suit in Mexico.

In a landscape where logistics, particularly in the Mexico City area, and manufacturing, notably in the Monterrey market, fuel the demand for industrial parks and new infrastructure, this service reaches significant uptake in these markets due to the nature of those industrial operations.

According to the digital magazine Real Estate Market & Lifestyle, Monterrey was the primary market for new buildings in 2023, with 80% of the demand corresponding to pre-rented or tailored projects.

Logistics sets the path for industrial growth

The industrial market in Mexico City grows in different areas driven by last-mile logistics and distribution centers. An example is the DHL Supply Chain project, which boosts the demand for space construction with a tailored development in a complex near the Felipe Angeles International Airport.

According to Datoz, in information published by El Financiero, the expected size of the project is 200,000 square meters, which indicates the scale logistics activities are supposed to reach.

The DHL Supply Chain and other logistics projects near the airport area joining the current infrastructure development activities, which are mainly focused in industrial corridors. In the CTT corridor (grouping Cuatitlan, Tultitlan, and Tepotzotlan areas), the inventory reaches 8.56 million square meters from 11.86 million square meters.

Space availability in the region is expected to increase as projects are under construction and new developments are needed to satisfy logistics needs.

Build-to-Suit projects in Mexico act as a driver for developments

Although the Mexico City and the Monterrey areas represent the primary industrial markets for the country, other Mexican regions have also noted the need to develop tailored projects.

In different areas, such as Leon, Guanajuato, or Merida in Yucatan, it has been necessary to promote Build-to-Suit construction to satisfy the requirements of various enterprises. Mercado Libre and Amazon, which operate in logistics activities, are examples of these.

Both companies have specific features to establish logistics hubs in the country. Build-to-Suit projects give them an option.

Customization: key for keeping the expansion

With e-commerce dynamics growing since 2020 to make Mexico the second most important Latin American market for this activity and expected to continue in the next years, logistics appears to be a growing activity for the country's industrial sector.

Additionally, nearshoring activities attract foreign enterprises with specialized needs, such as automotive or aerospace manufacturers, further fueling the demand for Build-to-Suit developments in Mexico. These two industries have been growing in the country, and to sustain this, Build-to-Suit projects can be crucial.

Frontier Industrial works to offer industrial buildings for rent and land for sale in the main industrial regions of the country, including Build-to-Suit projects in Mexico with all the needed services to start operations. If your company looks to establish activities in Mexico, get in touch and develop your project with us.