Industrial Construction Slows 30% Despite Steady Demand
Key Questions
What does the latest data show about industrial construction activity?
New data indicates a 30% drop in construction starts despite 7% demand growth. Developers are pulling back in northern markets while Mexico City sees a surge. This supply adjustment may tighten vacancy rates and support future rent growth.
How are developers responding in key markets like Mexico City?
Prologis Q2 call flagged undisciplined supply with 5.7 million sf starts in Mexico City. H1 2026 saw only 21 parks built versus a 100 target. Grupo JIBE recently opened a new park in Coahuila amid the slowdown.
What factors may further constrain industrial development?
Grid bottlenecks highlighted in the IMCO report could limit new projects. Developers are already adjusting supply in response to market conditions. This may lead to tighter vacancy and stronger rent growth over time.
New data shows 30% drop in construction starts vs 7% demand growth. Developers pull back in northern markets, Mexico City surges. Prologis Q2 call flags undisciplined supply in Mexico City (5.7M sf starts). H1 2026: 21 parks built vs 100 target. Supply adjustment may tighten vacancy and support rent growth. Grupo JIBE opens new park in Coahuila. Grid bottlenecks (IMCO report) may further constrain development.