The industrial portfolios of the Trusts operating in the country increased by about 2% in the last 12 months, according to SiiLA. The real estate trust sector (Real Estate Investment Trusts, or Fibras) has shown moderate growth, marked by strong demand for industrial warehouses due to the reconfiguration of supply chains (nearshoring) and adjustments in office, educational, and retail properties.
According to data from the SiiLA platform, the industrial portfolios of the Trusts operating in Mexico increased by about 2% in the last 12 months, especially driven by the need for logistics and manufacturing spaces in the northern states.
Office portfolios also grew by 2%, although strategies in this segment have varied. Fibra Mty implemented a divestment plan for low-performing properties, while Fibra HD and Plus have aimed for growth close to 5%.
Regarding educational properties, hotels, shopping centers, and medical units, the Fibras reduced their inventory by 1 to 2% due to adjustments to improve performance. However, a rebound is expected in the coming quarters, as Fibra Plus, for example, has more than 23,500 square meters of Gross Leasable Area (GLA) under construction.
“The moderate growth of portfolios led by the industrial and office sectors reflects a balance between strategic expansion and divestments. With the growing demand for industrial spaces driven by nearshoring and the development of premium offices, the Fibras continue to position themselves to take advantage of emerging opportunities and consolidate their role in Mexico’s commercial real estate market,” SiiLA indicated in an analysis.
Economic and Political Environment, Key
Roberto Solano, a specialist at Monex Grupo Financiero, stated that the key for the real estate trust sector will be to materialize the synergies of nearshoring in meeting the demand for new spaces. While relocation is crucial, it will also be important to evaluate the economic and now political environment in the coming weeks, both in Mexico and the United States.
For the end of the year, the specialist highlighted that the Trusts should consider aspects such as: interest rate cuts by the FED and Banxico; declining inflation in the United States, but with challenges in Mexico; the deployment of resources for acquisitions and developments; as well as caution amid the political and economic landscape.
“For the fourth consecutive year, we reiterate the industrial sector as a favorite. We could say that 2024 would be the second consecutive year with an attractive scenario in the sector, remembering that the commercial and office sectors have shown significant signs of recovery,” Solano stated.
Transactions
Data from the Mexican Association of Real Estate Trusts (Amefibra) shows that the value of investment in real estate assets in this sector achieved a 22% increase between 2021 and 2023, reaching a total of 800 billion pesos and a GLA of 35 million square meters (m2).
In the last 12 months, the industrial portfolios of Fibra Mty and Nova had the highest growth, with increases of 7 to 12%, according to SiiLA. Fibra Mty purchased eight industrial warehouses in Nuevo León, adding more than 186,000 m2 to its portfolio. At the same time, it has 66,200 m2 under construction and plans expansions exceeding 101,600 m2 in Coahuila and Nuevo León.
Additionally, Fibra Nove signed the acquisition of 50 hectares of land reserve in Chihuahua with the intention of building new industrial projects in the region. As of June 2024, the company reported 960,800 m2 of land in the north for projects that are in the planning phase.
For its part, Fibra Prologis announced an industrial park (eight buildings and 1.5 million square feet), located in Mexico City, for a total purchase price of 190 million dollars.
Source: El Economista
