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Industrial warehouses: characteristics, areas and recommendations

Industrial warehouses are a central part of commercial logistics of many businesses around the world. Having a physical place to store in adequate conditions and route your company’s products or articles is essential as part of the distribution chain.

In Mexico this activity is very present. In fact, Mexico City has about 9 million square meters, which represents more than 17% of the national industrial inventory, only below Monterrey (1).

In the first quarter of 2020, Mexico City closed with a gross demand of over 212 thousand m 2 , regarding the commercialization of industrial spaces (1) .

These figures are due to the fact that much of the economy in the country comes from industry manufacturing, exporting and logistics (1). In fact, it is expected that in 2020, the main industrial production areas will be (2):

  1. Mining.
  2. Generation, transmission and distribution of electricity, water and gas, to the final consumer.
  3. Building.
  4. Manufacturing industries.

Specifically, Mexico City and the State of Mexico captured, in 2019, 21% of Foreign Direct Investment (FDI) at the national level, which is equivalent to 3.2 billion dollars (1).

What are industrial warehouses

Industrial warehouses key point in large volume storage and distribution Vallejo Properties
Industrial warehouses are a key point in high volume storage and distribution.

Industrial warehouses differ from mini-warehouses or warehouses for self-storage purposes, due to the volume of articles or merchandise they handle.

In this case, its purposes are specifically commercial: for sales, distribution, operational and logistics, and not for domestic or small office solutions.

An example of this is that in Mexico more than 70 thousand square meters have been developed with lease for clients such as Mercado Libre or Ikea (1).

If what interests you are offices for rent, check out our article:
“Offices for rent in CDMX: areas and recommendations.”

Uses, characteristics and benefits of industrial warehouses

Industrial warehouses are key to the management and distribution of products. Its warehousing function is a pillar of successful logistics (3).

In this sense, one of the main uses, characteristics and benefits lies in the winery as a distribution center, which allows us to centralize the products or raw materials, if applicable, to process and transfer them to sales centers or directly to the consumer.

To take advantage of this type of space correctly, we suggest you define, in principle, the following points (3):

  • Type and quantity of products you want to store.
  • Approximate departure dates for each (which leave early and which tend to stay longer).
  • What items are part of the company (furniture, files, tools or devices).
  • What staff do you have?
  • How is the internal diagram of operations in the winery.
  • What machinery do you have to accommodate or transport objects.

The first point seems very obvious, but It is decisive to know the type of industrial warehouse you require, depending on the space and services you need.

For example, if your products are small and can be stacked, you will be taking advantage of the space vertically, but if it is larger articles or that cannot be placed one on top of another, then you must occupy the space horizontally (3).

Remember that the price of the wineries depends on the square meters, so you have to know how to calculate the space so that there are no more or no meters, unless you consider expanding very soon to occupy all the space. In fact, in Vallejo Properties you can count on our model Built to Suit, that builds your industrial warehouse to measure.

It is essential to balance the rental price
with the commercial benefit of the winery.

If you want to know more about the common and additional services of wineries for rent, we suggest you read: “Warehouses for rent in the CDMX: characteristics and recommendations”.

Regarding the specifications it is important that the industrial warehouse has a large space, a comfortable design to work (without columns or at least not many, and with adequate heights), and that is functional to your profile Customer, according to the sector of activities in which you work (4).

The most common benefits are: having private security, having access controls, proximity to main roads that connect with other parts of the city or neighboring areas, adequate infrastructure in the area (normally these are industrial complexes and not isolated warehouses), administration of your business in one place; in short, what is necessary to have a space according to your needs (5).

Differences with industrial buildings

It is common to use both concepts interchangeably, however, they are not the same. Its use, although practical, does not take into account an important difference: the industrial warehouse refers to the building that includes the machinery, the offices, the production area and, possibly, the workforce (3).

Within the warehouse, the industrial warehouse can be included as the area or specific space where the products are stored and delivered. , even as part of the dynamics of export and import of raw materials or materials, depending on the line of business of your company (3).

In this sense, the difference between a warehouse and a warehouse lies in the functions they fulfill, but since they can be in the same space and in fact, be built with the same materials: steel, concrete or in a combined way (3), they come to be used as synonyms.

Even broader is the term “industrial park” that considers the entire complex of warehouses and / or warehouses in a large area of land , with its own logic of operation, safety and control of environmental impact.

If you want to know more about what an industrial warehouse is, read our text:
“Industrial building: guide with everything you need to know” .

Industrial warehouse areas

Within the commercial offer of industrial warehouses, we find that in CBRE’s Class A Industrial Inventory, there are areas such as Vallejo-Azcapotzalco, Tultitlán, Tlalnepantla, Naucalpan, Iztapalapa-Tláhuac, Huehuetoca-Tepeji and Cuautitlán (6).

Specifically, we highlight Vallejo and Tultitlán for being industrial zones that keep two entities of the country connected: Mexico City and the State of Mexico.

Vallejo-Azcapotzalco and Tultitlán

In 2020, the Vallejo-Azcapotzalco area in Mexico City presented close to half a million square meters of inventory , with a vacancy index of just over 31 thousand m 2 , that is, 7.3% unemployment in the area (6). Take advantage of this availability index, and remember that in Vallejo Properties we have excellent locations in the area.

The average monthly rental price in Vallejo is $ 8 per m 2 (about 178 Mexican pesos) (6).

This area is one of the most important industrially, since since 1944 it emerged as a special subdivision called Industrial Vallejo with an area of 5 square kilometers , being part of the Azcapotzalco and Gustavo A. Madero mayors (7).

Inventory of the main industrial warehouse areas in Mexico
Inventory of the main industrial warehouse areas in Mexico.

In the case of Tultitlán, State of Mexico, has 1 million 69 thousand square meters of inventory , with a vacancy of 54,103 square meters, that is, 3.2% (6). In this area, companies in the logistics and manufacturing sector such as Avior, Herfrasa and Helm have been consolidated (6). At Vallejo Properties, we also have a winery complex for you in this area, write to us and we will advise you .

Average rental price in Tultitlán per
square meter per month is 4 dollars and 95 cents,
equivalent to 110 Mexican pesos (6).

As you can see, industrial development expands beyond the City, so it is important to think of a distribution strategy according to the location of the wineries, depending on the area in which you want to concentrate.

Take advantage of the vacancy rate in these areas to reserve a space, necessary for your business. Learn more details at our catalog of wineries .

If what you are looking for is information about renting premises, we suggest you read our article:
“Rent of commercial premises in CDMX: costs and benefits”.

Rent of industrial warehouses: recommendations

One of the main tips is that you have a conditioned space without humidity principles.

This is essential to preserve your products, since it is not only important to protect the goods with appropriate packaging, wrapping or containers (3), but the place must be in good condition.

Remember that moisture can corrode and oxidize part of the packaging and reach the product, in addition to detaching coatings on the walls of the warehouse (3), which can significantly damage your goods.

For this It is also necessary to have insurance provided by the place or externally , that protects you against certain weather conditions. We recommend that you review this issue directly on the site or through tools such as thermometers, which must be set at the temperature required by the storage instructions for your merchandise (3).

To be careful with this issue, We suggest that the place have windows or doors that allow light and air to pass through, continuously and naturally.

This is ideal, but if it is not the case, you can also use some artificial tools like temperature controllers, exhaust fans, sodium lights (which generate less heat than traditional ones), in addition to painting the cellar with light colors to reflect light or heat (3). This is essential to maintain both the place and your products.

Another very important recommendation is that the industrial warehouse you rent must be an established space , with permits and licenses for its operation, since what is saved is a great investment and you need to verify that the site is safe and reliable.

If you want to know more information about the wineries, we suggest you read:
“Wineries: trends, projections and recommendations for the sector after the pandemic”.

Likewise, you should know what services you have: if it has a parking lot, office area, loading and unloading area, bathrooms, leveling ramps; as well as the construction material and the contracting conditions.

In some cases, additional services are provided (not common) such as moving, periodic fumigation, tools for storage, convenience store (with sale of locks, boxes, shelves, packaging), insurance policies, perimeter alarms, location advice (according to a market analysis), legal scheme of site operation and administration (8).

Industrial warehouses for rent Vallejo Properties
You should always verify the services that are included in the rent of the industrial warehouse.

Other of the most outstanding recommendations are (9):

  • Take advantage of space strategically and keep your inventory organized . This serves to avoid problems not only in logistics, but also in the conservation of the products, since if you stack equipment that is fragile, you do not have an order on the expiration date of your items or you do not have a record of all these, you can affect the release of goods, compliance with delivery times and accumulate customer complaints in this regard.
  • Train staff continuously. This is significant, since they must be prepared for the correct handling of the articles, in order to avoid accidents that could damage the personnel or the goods they operate. In addition, it is essential to reduce risks and expenses, and optimize the performance of your winery in accordance with safety and hygiene measures.
  • Create effective distribution systems. This is key, especially since the operation of an industrial warehouse equates to large volumes of merchandise. For this reason, it is very useful to draw systematic and automated routes for the fulfillment of orders, as well as the entry and exit of products until they reach their destination, in order to avoid expenses in long, inefficient or arbitrary routes.
  • Organize the goods . Follow a clear logic, which is well managed by the staff, for the quick placement and location of the products, since the rotation of articles is a function and an objective, at the same time, so creating storage, location and arrangement systems of merchandise is vital to expedite their entry and exit from the warehouse.
  • Update your equipment. Although it is expensive, having adequate and current equipment is essential for both safety and productivity. In this case, we refer to cabinets, containers, shelves, shelves, refrigeration equipment (if you handle perishable items), among other artifacts, which allow us to locate, maintain and transport the products without major problem.

We also suggest you consider digital strategies with a digital marketing agency specialized in your sector. This will allow your business to accelerate its commercial potential in the areas of your interest.

Remember to consider all these points to make the best decision . Although the search for an industrial warehouse rental is not an easy task, it is a process that is worth doing with the appropriate advice. At Vallejo Properties we give you the attention you need. Do not hesitate to contact us .

Conclusions

Have a space that centralizes your operations in an area with activities similar to your business, or at least industrial, allows you to acquire a significant volume of experience, organization and optimization for your business.

Remember that growing your company depends largely on the decisions you make, the strategic space you choose and the alliances you form. In this sense, in Vallejo Properties we support you to expand your business.

References

  1. CBRE. Industrial market: CDMX, Guadalajara and Monterrey. CBRE, 2020. Retrieved May 25, 2020.
  2. INEGI. Industrial activity. National Institute of Statistics and Geography (INEGI), 2020. Retrieved May 26, 2020.
  3. Flex. Blog. Flexpark, 2018-2019. Retrieved May 24, 2020.
  4. CLIS. Characteristics of a good industrial winery. Siberia Industrial Logistics Complex (CLIS), 2017. Retrieved May 26, 2020.
  5. Bodegas Santa Cruz. 8 benefits of a winery in an industrial park. Bodegas Santa Cruz, 2019. Retrieved May 26, 2020.
  6. CBRE. 1Q 2020 closed with more than 200 thousand m2 of gross absorption, 35% higher than 1Q 2019 (in PDF). CBRE Research, 2020. Retrieved May 25, 2020.
  7. AIVAC. Aivac. Vallejo Industrial Association, AC (AIVAC), s / f. Retrieved May 25, 2020.
  8. Cindi Islands. Storage franchises in Mexico, innovative ideas to invest. Franchises Today, 2015. Retrieved May 25, 2020.
  9. Logycom. 5 points to know if you need to rent a winery. Logycom, s / f. Retrieved May 26, 2020.

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