CENTRAL www.datoz.com
1Q2022
We are Datoz We combine continuous commercial real estate research with cutting edge software to provide transparency to the industry through impartial and constantly updated market intelligence. Our research team monitors and records real estate activity throughout México, covering 24 markets in the industrial segment, 5 markets in the corporate segment and 9 markets in the retail segment. Research efforts include field verification activities that reinforce our data precision and provide our researchers with physical evidence to support our monthly market updates. Datoz proprietary software allows users to connect online any time and from anywhere. Our suite of products offers the possibility to search verified available spaces, download property brochures, view details from thousands of lease and sale transactions, customize data-sets, download statistics and indicators in friendly and customizable formats, among many other features.
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Index
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We are Datoz
1
Index
2
Economic outlook
3
Market location
4
Inventory
5
Vacancy rate
6
Gross absorption
7
Asking and closing prices
8
Construction activity
9
Summary
10
Glossary
11
Methodology
12
Contact information / Privacy policy
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ECONOMIC OUTLOOK 1Q22
Economic Outlook According to INEGI (Instituto Nacional de Estadística y Geografía), national industrial activity increased 1.0% in January 2022, compared to the previous month. This is due to the increase in mining sector. However, industrial production had an increase of 4.3% annually.
Employment in the manufacturing industry grew at 2.3% per year as of January 2022, while the monthly rate had an increase of 0.1%, according to INEGI. The first month of the year recorded 4.3 million manufacturing workers, the highest level for a January since records have been kept. In December 2021, consumption registered a 7.4% annual increase, while monthly consumption had a rise of only 1.5%, according to INEGI.
Inflation accelerated in March and reached 7.45%, its highest level in 21 years. This was due to the increase in energy and prices of basic goods, according to INEGI.
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Market Location
CENTRAL
Hidalgo
CDMX
Edo. de México
Tlaxcala
Puebla
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INVENTORY 1Q22
Inventory Central region, which includes Mexico City, Puebla, and Hidalgo closed 1Q-2022 with a total inventory of 200 million ft2. Approximately 5.43% more than the the same period a year earlier.
the period with over 158 million ft2. Meanwhile, Puebla and Hidalgo, ended the quarter with 29.4 million ft2 and 12.4 million ft2, respectively.
Mexico City drove his growth, adding over 4.4 million ft2 during the last 12 months, to close
Hidalgo
Market Inventory measures the total size of a real estate market taking into account delivered and under construction buildings from all classes (A, B and C).
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*ft2
MARKETS
INVENTORY
CDMX
158,162,846
Puebla
29,436,712
Hidalgo
12,375,410
Total
199,974,967
6%
CDMX
15% Puebla
79%
**Central
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VACANCY RATE
1Q22
Vacancy rate
2021
2022
CDMX
7.30%
4.77%
Puebla
4.75%
2.85%
Hidalgo
1.47%
1.47%
Average
4.51%
3.03%
Vacancy rate for the region stood at 3.03% by the end of the first quarter, equivalent to about 8.6 million ft2. The vacancy rate decreased 148 basis points YOY. Mexico City's vacancy rate decreased by 253 basis points to end the quarter with 7.5 million ft2, an approximate rate of 4.77%.
CDMX 2021
Puebla
2022
Hidalgo
The ratio of available space to total inventory is described as vacancy rate.
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0%
2%
4%
6%
8%
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*Central © Source: Datoz
GROSS ABSORPTION
1Q22
Gross Absorption
During the first quarter of the year, the overall regional gross absorption reached 3.5 million ft2, dropping 4.51% YOY. Most of the activity can be attributed to Mexico City which recorded a total absorption of almost 3.4 million ft2, or 96% of total activity for the region. A total of 33 transactions, mostly for logistics and e-commerce activities, were recorded in Mexico City during the period. The largest transactions took place in the Tepotzotlán corridor with a transaction of over 570,000 ft2 followed by a 248,000 ft2 lease in Tlanepantla.
4,000,000 MARKETS
1Q 2022
CDMX
3,387,198
Puebla
125,231
Hidalgo
-
Total
3,512,429
3,000,000 2,000,000 1,000,000 0 CDMX
Gross absorption refers to the amount of space leased or sold to and end-user during any given period.
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*ft2
**Central
Puebla
© Source: Datoz
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Hidalgo
ASKING AND CLOSING PRICES
1Q22
Asking and closing prices
Overall average asking lease rate was $0.41 USD/ft2/month for the region. The average closing price for transactions recorded during 1Q-2022 was $0.50 USD/ft2/month.
in the country and ended the quarter with an average of $0.54 USD/ft2/month. Meanwhile, average closing price was $0.52 USD/ft2/month lower.
Mexico City has traditionally been one of the markets with the highest asking rates
$0.60
MARKETS
ASKING
CLOSING
CDMX
$0.54
$0.52
Puebla
$0.37
$0.47
Hidalgo
$0.31
-
$0.20
Average
$0.41
$0.50
$0.10
$0.50 $0.40 $0.30
$0.00 CDMX
The asking price is the rate per ft2 at which a building’s space is offered. On the other hand, the rate at which a space has actually been leased or sold is the closing price.
Puebla
Asking *USD/ft2/month **Central © Source: Datoz
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Hidalgo
Closing
CONSTRUCTION ACTIVITY
1Q22
Construction activity Construction starts amounted to 1.2 million ft2 during the quarter across 8 speculative buildings. The construction droped 30.51% compared to 1Q-2021.
Featured projects
NAME
Construction Activity measures the total amount of construction initiated during any given period including speculative, build-to-suit (BTS) and build-to-own (BTO) spaces.
PARK
GLA
OWNER
Building 1
Premium Park Tultepec II
201,655
D y H Administraciones
CDMX
Tultitlán
Building 11
Tepozpark IV
181,021
Fibra Uno
CDMX
Tepotzotlán
Building 2
Tule Industrial Park 3
253,318
AM Developers
CDMX
Tultitlán
MARKET
*ft2 **Central ****GLA (Gross Leasable Area) © Source: Datoz
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1Q22 Central
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SUBMARKET
SUMMARY
1Q22
Summary The central region's markets ended the first quarter of the year with over 200 million ft2 of inventory, an annual growth of 2.24%. By the end of 1Q-2022, the region's vacancy rate stood at 3.03%, approximately 8.5 million ft2. During the quarter, 3.5 million ft2 were absorbed. Average asking lease rate ended at $0.41 USD/ft2/month. Average closing price was $0.50 USD/ft2/month. Construction starts exceeded 1.2 million ft2 during the period.
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GLOSSARY
1Q22
Glossary Inventory (ft2): Measures the total size of a real estate market taking into account delivered and under construction buildings from all classes (A, B and C). Vacancy rate (%): The ratio of available space to total inventory. Availability (ft2): Measure of the total space available for lease and sale including delivered buildings as well as those under construction and planned from all classes (A, B and C). Gross absorption (ft2): Refers to the amount of space leased or sold to an end-user during any given period. Asking price: The rate per square foot at which a building’s space is offered. Closing price: The rate at which any given space has actually been leased or sold. Construction activity (ft2): The sum of construction starts including speculative, build-to-suit (BTS) and build-to-own (BTO) projects.
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METHODOLOGY
1Q22
Methodology We work with an extensive network of market participants and maintain constant contact to update information on a monthly basis. In this manner, we ensure that key market data comes directly from the professionals involved in diverse activities that affect commercial real estate in each and every market. Our researchers verify all collected data and visit markets regularly to corroborate information that can only be validated through physical surveys and on-site inspections. We continuously work to standardize number formats, calculations and ratios in order to present our results in a simple and comprehensible manner. Once data has been thoroughly verified and meets quality standards, it is merged and loaded unto our database, which in turn compares it against other entries pertaining to the same property and market to validate its place in a building’s historic timeline. Furthermore, our analysts continually review our data-sets in order to proactively amend anomalies and in doing so help maintain the highest standards of quality for real estate data in Mexico.
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Legal notice The material presented in this document by Datoz Real Estate refers to information collected from the market and provided by trusted sources. The contents shall be exclusively informative without legal value or effect or of any other nature, so Datoz Real Estate is not responsible for any damage that results from or may derive from the use or misuse that is made of these contents. For more information about this report or any other investigative material of Datoz consult our website www.datoz.com.
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