The state of Mexico’s industrial park grows driven by Mexico City’s logistics

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With a US $4,000 million investment, regional authorities and the private sector aim to boost the dynamics of the industrial park in the State of Mexico to capitalize on the volume of logistics activities. 

In addition to the Mexico City Metropolitan Area, various industrial locations are poised for growth due to the increasing demand within the evolving logistics hub. The allocated resources will be used to develop new industrial facilities in Zumpango, Tultepec, Tultitlan, Tonanitla, Jaltenco, and Tecamac over the next five years. 

The industrial Real Estate dynamics in the Mexico City area have been bolstered by logistics activities related to e-commerce, as technology has enabled the emergence of various online shopping platforms. According to The Logistics World, an electronic magazine, e-commerce activities accounted for 17.2% of retail sales in Mexico in 2023, with expectations to reach 20.5% of the retail market this year. 


Mexico City and the industrial park in the State of Mexico: second place in Mexican logistics growth

The Mexico City Metropolitan Area currently holds the second position in industrial warehouse construction in the country. During the first month of 2024, industrial construction in the capital market reached over 732,000 square meters. This trend also impacts the logistics dynamics for the industrial park in the State of Mexico and the industrial park in Toluca. These two regions offer easy access to the capital market. 

Due to the boom in the logistics sector over the past two years, Governor Alfredo del Mazo Maza stated that, during the latter part of his term, he will focus on ensuring that the State of Mexico becomes an investment hub for logistics. The entity represents the largest consumer market in the country, with more than 22 million people. 

“May these projects continue to grow in our state, and may the State of Mexico remain an attractive destination for logistics investment. We have the connectivity and infrastructure conditions to make it happen, and we will continue to facilitate these investments,” he said, emphasizing his administration’s efforts to improve infrastructure and enhance connectivity. 

The growth in logistics explains the boost in last-mile logistics services and the emergence of new delivery models, such as same-day delivery. However, while these new services offer opportunities for social inclusion by creating new workplaces, they also present challenges regarding innovation, technology, and sustainability.  


The main challenges for logistics growth

In various areas, such as the industrial park in the State of Mexico, the Guadalajara Metropolitan Area, or the Monterrey Metropolitan Area, logistics face significant challenges: 

  • Limited infrastructure: Logistics enterprises encounter traffic congestion, low vacancy rates for industrial spaces, and connectivity issues. 
  • Rising costs: Logistics costs are increasing in Mexico and Latin American countries due to rising fuel prices, technology costs, and workforce tariffs.
  • Sustainability: Logistics activities have environmental impacts, requiring companies to adopt sustainable practices to reduce their ecological footprint.  

Improving infrastructure and focusing on technology and sustainability may drive the establishment of a major logistics hub in the State of Mexico, taking advantage of the activity boost due to the nearshoring trend and changes in consumption habits. 

Suppose your enterprise is considering establishing industrial operations or logistics activities in the State of Mexico’s industrial park or any other important region of the country. In that case, Frontier Industrial can assist you with industrial land for sale, industrial buildings for rent, or tailored Build-to-Suit projects with all the needed services. Please get in touch with us if you have plans to develop any project.