NORTHEAST 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
NORTHEAST
Coahuila Nuevo León
Tamaulipas
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INVENTORY 1Q22
Inventory The northeast region concluded the quarter with a total inventory of over 272 million ft2, roughly 4.36% higher than the same period a year earlier.
quarter with 54 million ft2 and 36 million ft2, equivalent to 20% and 14% of total regional GLA.
Monterrey, the second largest market in Mexico, added over 7.3 million ft2 during the previous 12 months, surpassing 138 million ft2 of GLA. The second and third largest market in the region, Saltillo and Reynosa, ended the
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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MARKET
INVENTORY
Monterrey
138,783,513
Saltillo
54,641,060
Reynosa
36,427,005
Matamoros
17,280,141
La Laguna
14,313,294
Nuevo Laredo
10,585,851
Total
272,030,864
Matamoros Reynosa La Laguna
14% Saltillo
6%
5%
20%
51% Monterrey
*ft2 **Northeast © Source: Datoz
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4%
Nuevo Laredo
VACANCY RATE
1Q22
Vacancy rate
MARKET
2021
2022
Monterrey
8.99%
5.40%
La Laguna
7.27%
4.78%
Nuevo Laredo
2.78%
3.80%
Matamoros
4.03%
3.68%
Saltillo
5.24%
2.91%
Reynosa
4.21%
2.66%
Average
5.42%
3.87%
The region's vacancy rate decreased by 155 basis points and closed the first quarter at 3.87%. The drop in available spaces can be attributed to strong demand, especially from Monterrey, Reynosa, and Saltillo. Although demand for industrial space was strongest in Monterrey, this market also has the highest vacancy rate and ended the quarter at 5.40% which amounts to around 7.5 million ft2. This rate however represents a decrease of 359 basis points YOY. The lowest vacancy rate of the region was recorded in Reynosa with 2.66%, also due to strong demand mixed with low construction starts of speculative space.
Monterrey
2021
La Laguna
2022
Nuevo Laredo Matamoros Saltillo
*Northeast © Source: Datoz
Reynosa
The ratio of available space to total inventory is described as vacancy rate.
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0%
5%
10%
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GROSS ABSORPTION
1Q22
Gross Absorption
MARKETS
1Q-2022
Monterrey
2,876,205
Reynosa
787,725
Saltillo
754,411
Matamoros
8,000
La Laguna
-
Nuevo Laredo
-
Total
4,426,341
Gross absorption for the region reached 4.4 million ft2 during the first quarterer, approximately 10.4% more than 1Q-2021. Most of the region's absorption occured in Monterrey, which accumulated 65% of all activity and closed the period with more than 2.87 million ft2 of transaction activity across 27 deals. This market and the region in general has flourished due to nearshoring activity and a mix of tenants initiating manufacturing, assembly and logistics operations.
4,000,000 3,000,000 2,000,000 1,000,000 0 Monterrey
Gross absorption refers to the amount of space leased or sold to an end-user during any given period.
Reynosa
Saltillo
Matamoros
La Laguna
*ft2 **Northeast © Source: Datoz
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Nuevo Laredo
ASKING AND CLOSING PRICES
1Q22
Asking and closing prices
MARKETS
ASKING
CLOSING
Nuevo Laredo
$0.47
-
Monterrey
$0.42
$0.39
Reynosa
$0.40
$0.60
Saltillo
$0.36
$0.41
Matamoros
$0.36
-
La Laguna
$0.35
-
Average
$0.39
$0.47
The average lease asking price for industrial spaces in the northeast region was $0.39 USD/ft2/month at the end of 1Q-2022, while the average closing rate stood at $0.47 USD/ft2/month. Nuevo Laredo had the highest asking price, although this figure is a product of one or two vacant spaces in that market. The largest YOY leap in the average closing price was recorded in Reynosa, which ended the period with a figure of $0.60 USD/ft2/month.
$0.70 $0.60
The asking price is the rate per square foot 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.
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$0.50
Asking
$0.40
Closing
$0.30 $0.20 $0.10 $0.00 Nuevo Laredo
Monterrey
Reynosa
Saltillo
Matamoros La Laguna
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*USD/ft2/month **Northeast © Source: Datoz
CONSTRUCTION ACTIVITY
1Q22
Construction activity
Over 2.1 million ft2 of construction starts were recorded in the region during 1Q-2022. BTS activity represented over 70% of all construction starts, which follows a trend seen in other regions due to some extent to the increase in construction prices albeit strong absorption activity.
Featured projects
PARK
GLA
OWNER
MARKET
SUBMARKET
BTS - JCI
CPA ADN
304,216
CPA
Monterrey
Ciénega de Flores
BTS - HNI Corporation
Stand Alone Arteaga
539,500
Mencorsa
Saltillo
Arteaga
BTS – Xb Fullfilment
Colonial
721,000
Rei Investments
Reynosa
Pharr Bridge
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.
*ft2 **Northeast ****GLA (Gross Leasable Area) © Source: Datoz
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SUMMARY
1Q22
Summary Total inventory for the northeast region reached 272 million ft2, a YOY increase of 4.36%. The region's vacancy rate ended at 3.87% with roughly 11.8 million ft2 of available space. Accumulated gross absorption for the region is estimated at 4.4 million ft2. Average asking rate was $0.39 USD/ft2/month. Meanwhile, the average closing price for the quarter was $0.47 USD/ft2/month. The region recorded over 2.1 million ft2 of construction starts. .
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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.
Contact 01 (81) 2721 0850 www.datoz.com Lomas del Valle 445, Colonia Lomas del Valle, 66256 San Pedro Garza García, N.L.
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