Industrial Market Report Mexico 2024

In 2024, Mexico's industrial real estate market demonstrated resilience and growth, rebounding from the slight dip experienced in 2023.

Net absorption of industrial space returned to the six-year average, signaling a robust recovery in demand across the 18 markets we closely monitor.

The year saw a substantial 6% expansion in inventory, reflecting confidence in the market's long-term prospects. This growth, however, led to an increase in vacancy and availability rates in most markets. On a national level, we observed a 36% increase in available space, pushing the availability rate to 6%.

To contextualize, the ratio of available space to average net absorption rose from 136% in 2023 to 200% in 2024. In terms of months of supply, this translates to an increase from 16 months in 2023 to 25 months in 2024.

Despite the increase in available space, the market maintained its attractiveness to tenants and investors alike. This is evidenced by a notable 14% increase in overall weighted lease rates, underscoring the quality and desirability of Mexico's industrial properties.

While individual market performances varied, the overall trend points to a dynamic and evolving industrial landscape. As we move forward, we anticipate continued opportunities for both developers and occupiers, with potential for market equilibrium as demand catches up with the expanded inventory.