In Mexico, logistics real estate is scaling up

“Mexico is a friendly country and a strategic partner of France.” During his visit to Mexico City on November 7, Emmanuel Macron made no secret of his desire to open a new phase in the bilateral partnership he is advancing with his counterpart, President Claudia Sheinbaum. The moment is all the more symbolic as the two countries will celebrate the bicentennial of their diplomatic relations in 2026. A history of friendship… but also of trade. With 132 million inhabitants and 1.97 million km²—nearly four times the size of France—Mexico is an essential player in the North American market. French companies have not overlooked this reality: nearly 700 have operations there, including national champions such as Safran, Michelin, Valeo and Air Liquide. And logistics? The country’s size, industrial growth and deep integration with the U.S. market make it a major issue for the Mexican economy. A challenge compounded by the tariff war waged by the U.S. president and Sino-American trade tensions, which are accelerating reshoring in the country.

Driven by an unprecedented wave of nearshoring—the relocation of an economic activity to a neighboring country—Mexico now holds a central position in North American supply chains. In 2024, the national warehouse stock stood at 100 million m², while average vacancy rates reached 7.2%. “Demand for industrial parks has literally soared,” says Gastón Cedillo, former director of the National Transportation and Logistics Laboratory for ten years, now a professor at Texas A&M International University and a board member of the Mexican Logistics and Supply Chain Association (Mexico Logistico). Three areas concentrate these flows: the border North (Monterrey, Ciudad Juárez, Tijuana), the Bajío in the center of the country (Querétaro, Guanajuato, San Luis Potosí), and the Pacific coast. In these regions, the pace is relentless: cranes keep turning and new industrial zones fill up before they are even fully delivered. The same trend can be seen in Laredo, Texas, an essential logistics hub between the two countries which, following the shift in U.S. trade policy toward China, has emerged as one of the leading entry points for goods into the United States, ahead of the Port of Los Angeles according to certain indicators.

 “The country lacks a logistics approach to land-use planning and, consequently, to the relevant planning of industrial zone locations. Much work also remains to be done on environmental issues,” notes Gastón Cedillo. This acceleration is also putting infrastructure to the test. The country’s main logistics artery, Carretera 57, which links its industrial centers with the state of Texas, operates at near-constant saturation. This route, vital to North American trade, is also criticized for its safety issues, a direct consequence of the volume of heavy trucks on the road. Lastly, for truck drivers, the lack of suitable rest areas directly affects the appeal of the profession. “Drivers no longer want to do this job, and the most qualified leave for the United States,” warns Gastón Cedillo, who has just developed a methodology tailored to emerging countries to improve the location of rest areas based on millions of GPS data points from heavy trucks. The problem is not unique to Mexico: in Europe, the shortage of secure truck parking spaces is already estimated at nearly 400,000 spaces, according to a study funded by the European Commission.

Against this backdrop, local players report a clear move upmarket in logistics real estate in recent years. Manufacturers are now seeking AAA warehouses that are taller, more robust and better equipped. One textbook example of this transformation is the Kaizen City project, developed by Construye Industrial in Santiago de Querétaro, a metropolis known as one of the country’s most dynamic and safest. Located in the immediate vicinity of the international airport and the Querétaro Aerospace Cluster (Safran, Bombardier, etc.), the project began in 2019 on a 500,000 m² site, with its first delivery completed in 2021.

 Today, Kaizen forms the largest industrial park in the Bajío, combining manufacturing, services and, of course, logistics. “We designed Kaizen to accommodate clients needing anywhere from 1,500 m² to 150,000 m²,” explains Alejandro Kahan, commercial director of Construye Industrial and head of Kaizen City’s development. The park currently totals 392,730 m² already built, with buildings reaching up to 16.59 meters in height. Some 30 companies are already established there, representing around 30% of the overall project developed to date, while a second park is under construction. Kaizen also stands out for its services: a retail area, dining, operational offices and residential suites for executives. “Our clients’ success is our success,” says Alejandro Kahan. The park is LEED-certified and has received the national “Hecho en México” label, which recognizes projects considered strategic for national industry.

Without downplaying the persistent challenges facing Mexican logistics—limited energy capacity, dispersed business zones, the security of property and people, saturated corridors, an uncertain future for trade negotiations with the United States, and a driver shortage—a project such as Kaizen City illustrates the favorable momentum currently benefiting the local sector. The regionalization of North American value chains, the modernization of industrial parks and the inflow of international investment confirm the country’s attractiveness. For French logistics real estate players, opportunities are emerging, particularly in engineering, sustainable design, security and operational technologies. “The coming years will be marked by a growing recognition of logistics reliability as a source of local added value, the widespread adoption of new technologies, and much more precise optimization of logistics networks,” Gastón Cedillo anticipates. A presidential visit was clearly warranted.