In 2021 rental prices in the Bajio Region of Mexico have remained stable when compared with those registered in the last quarter of 2020. The most important developers in the area have implemented different negotiation tools and tactics to make their offerings more attractive to potential customers. It is also estimated that by 2021 the prospects for increased industrial property absorption rates will improve and be reflected in the indicators that will be registered at the end of the year. Prospects for growth are believed to be positive because Guanajuato is one Although 2020 and the beginning of the present year have not been the best for the world’s economies due to the Covid-19 pandemic, areas such as the Bajio Region of Mexico continue to win over foreign investors. Investment in the area remains robust in activities such as logistics, e-commerce, financial services, and manufacturing.
According to regional experts, the most important developers in the area continue to bet on Querétaro. This is true especially in the Airport Corridor, where logistics and manufacturing growth has been maintained. At present, in this area of Querétaro, there are 40,000 square meters under construction and projects that total about180,000 square meters more. The average rental price in the Bajio region of Mexico has seen a small reduction because different companies have implemented new forms of negotiation to offer more competitive prices to potential tenants.
Data from the last quarter of 2020, which has been prepared by Mauricio Mondragón, market analyst at Newmark Associates, indicates that investment in industry is expected to experience a modest growth spurt in the coming months. This activity will promote greater economic stability through the building of additional industrial parks in the city. Despite the challenges that have been occasioned by the pandemic, investment in Querétaro and Bajio region of Mexico has been steady.
Guanajuato on the rise
In another state in the Bajio region of Mexico, Guanajuato, industrial development in the market has been less robust than what has been the case in neighboring Querétaro so far this year. Because of this trend, the industrial building inventory that is available for occupancy by companies that are arriving in the state in the automotive and general manufacturing sectors has increased slightly.
The availability rate has risen 1% compared to the last quarter of 2020 and the volume of projects presently under construction has increased to 60,388 m2. This is because industrial developers expect a better year for 2021 and are willing to offer better rental terms to their customers that include decreasing the minimum contract time to their average exit prices.
In the last quarter of 2020, there was little activity in the Guanajuato industrial real-estate market due to an increase in inventory that reached a high of 8 million m2, with an availability rate of 5.1%. This figure was due to the vacancy, relocations, and delivery of several projects to market that had been under construction
Other activity resulted from the fact that companies from multiple sectors have been in the process of adapting during the pandemic to reconfigure their structure, business model, occupied space, and/or location. Despite these moves, Guanajuato has reported a positive performance that has been driven by gains in the logistics and manufacturing sectors The corridor in and around the city of Silao has most of the industrial spaces under construction at present.
of the strongest and most developed and most technologically advanced economies in the country.
Because of its strategic location in the Bajio region of Mexico, Guanajuato has the advantage of being a focus of attention for companies in the manufacturing, logistics, and automotive sectors. It also has a dynamic footwear industry that exports $349 million of its products annually.
Guadalajara reactivates its economic activity
The industrial real estate market in the Guadalajara Metropolitan Area has not lost its dynamism. Contrary to what might be expected, it strengthened throughout 2020 as a result of movements in e-commerce and logistics. Of the 2020 transactions that transpired in this part of the Bajio region in Mexico, 80% corresponded to logistics activity. The remainder encompassed activities such as manufacturing and assembly.
According to the 4Q2020 report, prepared by Vianey Macías, an analyst for Newmark Real-Estate, the turns that stood out throughout 2020 belong to the logistics and warehouse market with 38%; followed by services with 22% and consumer goods and services with 18%.
Notably, accumulated absorption rates in the state of Jalisco were historical throughout the year. Examples of this included important operations in the Metropolitan Zone of Guadalajara, in particular, the El Salto industrial development with the highest absorption of more than 250,000 m2. El Salto was followed by the Periférico Sur industrial park, with almost 65,000 m2″
Prices in this area of the Bajio Region in Mexico have increased slightly from US $4.43 per square meter in 2019 to US $4.55 at the end of 2020. The maximum price recorded corresponds to the López Mateos Sur corridor, with highs of $6.14 per square meter. The lowest price belongs was registered at the Periférico Sur at US $3.88.