Industrial warehouses are a central part of the commercial logistics of many businesses around the world. Having a physical place to store your company’s products or articles in adequate conditions and to put them on the road is fundamental as part of the distribution chain.
In Mexico, this activity is very present. In fact, Mexico City has close to 9 million square meters, representing more than 17% of the national industrial inventory, second only to Monterrey (1).
In the first quarter of 2020, Mexico City closed with a gross demand of more than 212 thousandm2, with respect to the commercialization of industrial spaces (1).
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These figures are due to the fact that a large part of the country’s economy comes from the manufacturing, export and logistics industries (1). In fact, by 2020, the main areas of industrial production are expected to be (2):
- Mining.
- Generation, transmission and distribution of electricity, water and gas to final consumers.
- Construction.
- Manufacturing industries.
Specifically, Mexico City and the State of Mexico captured, in 2019, 21% of Foreign Direct Investment (FDI) at the national level, equivalent to 3.2 billion dollars (1).
What are industrial warehouses
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: sales, distribution, operational and logistical, and not for home or small office solutions.
An example of this is that in Mexico more than 70 thousand square meters have been developed with leases for clients such as Mercado Libre or Ikea (1).
If you are interested in offices for rent, check out our article:
“Offices for rent in CDMX: zones and recommendations”.
Uses, characteristics and benefits of industrial warehouses
Industrial warehouses are key to the handling and distribution of products. Their storage function is a pillar of successful logistics (3).
In this sense, one of the main uses, characteristics and benefits lies in the warehouse as a distribution center, which allows us to centralize products or raw materials, as the case may be, to process and transfer them to sales centers or directly to the consumer.
To make the best use of this type of space, we suggest you define, in principle, the following points (3):
- Type and quantity of products to be stored.
- Approximate departure dates for each (which ones leave early and which ones tend to stay longer).
- What items are part of the company (furniture, files, tools or devices).
- What personnel do you count on?
- How is the internal diagram of operations in the warehouse.
- What machinery do you have for the handling or transportation of objects.
The first point seems very obvious, but it is crucial 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 using the space vertically, but if they are larger items or cannot be placed one on top of the other, then you will have to occupy the space horizontally (3).
Remember that the price of the warehouses is a function of the square meters, so you have to know how to calculate the space so that there are neither too many nor too few meters, unless you consider expanding very soon to occupy all the space. In fact, at Vallejo Properties you can count on our Built to Suit model , which custom builds your industrial warehouse.
It is essential to balance the price of the lease
with the commercial benefit of the winery.
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If you want to know more about the common and additional services of warehouses for rent, we suggest you to read:
“Warehouses for rent in the CDMX: characteristics and recommendations”.
With regard to specifications, it is important that the industrial warehouse has a large space, a comfortable design for working (without columns or at least not many, and with adequate heights), and that is functional to your profile according to the sector of activities in which you work (4).
The most common benefits are: private security, access control, proximity to main roads that connect to other parts of the city or neighboring areas, adequate infrastructure in the area (usually industrial complexes and not isolated warehouses), administration of your business in one place; in short, everything you need to have the best possible business management. 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 building refers to the building that includes the machinery, offices, production area and, possibly, the workforce (3).
The industrial warehouse can be included within the warehouse as the specific area or space where products are stored and dispatched, even as part of the dynamics of exporting and importing raw materials or materials, depending on your company’s line of business (3).
In this sense, the difference between a warehouse and a building lies in the functions they perform, but since they can be in the same space and in fact be built with the same materials: steel, concrete or a combination of both (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 environmental impact control.
If you want to know more about what an industrial building is, read our text:
“Industrial building: guide with everything you need to know”.
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Industrial warehouse areas
Within the commercial supply 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 because they are industrial zones that connect two Mexican states: 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 rate of just over 31 thousandm2, that is, 7.3% vacancy in the area (6). Take advantage of this availability rate, and remember that at Vallejo Properties we have excellent locations in the area.
The average monthly rental price in Vallejo is US$8 perm2 (about 178 Mexican pesos) (6).
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This zone is one of the most important at the industrial level, since 1944 it emerged as a special subdivision called Industrial Vallejo with an area of 5 square kilometers, being part of the municipalities of Azcapotzalco and Gustavo A. Madero (7).
In the case of Tultitlán, State of Mexico, it has 1 million 69 thousand square meters of inventory, with a vacancy of 54 thousand 103 square meters, or 3.2% (6). Logistics and manufacturing companies such as Avior, Herfrasa and Helm (6) have been consolidated in this area. In Vallejo Properties, we also have a complex of warehouses for you in this area, contact us and we will advise you.
The average price of rent in Tultitlán for
per square meter per month is $4.95 per month,
equivalent to 110 Mexican pesos (6).
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As you can see, industrial development is expanding beyond the City, so it is important to think about a distribution strategy according to the location of the warehouses, depending on the area in which you want to concentrate.
Take advantage of the vacancy rate in these areas to reserve a space needed for your business. Find out more details in our catalog of wineries.
If you are looking for information about local rentals, 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 to have a conditioned space without humidity principles.
This is essential for preserving your products, since it is not only important to protect the goods with adequate packaging, wrapping or containers (3), but the place must also be in good condition.
Remember that humidity can corrode and oxidize part of the packaging and reach the product, as well as detach 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, to cover you in case of certain weather conditions. We recommend that you check this issue directly on site or through tools such as thermometers, which must be programmed to the temperature required by the conservation indications of your merchandise (3).
To be careful with this issue, we suggest that the place has windows or doors that allow the passage of light and air, in a continuous and natural way .
This is ideal, but if this is not the case, you can also use some artificial tools such as temperature controllers, air extractors, sodium lights (which generate less heat than traditional ones), as well as painting the cellar with light colors to reflect light or heat (3). This is essential to maintain both the site and your products.
Another very important recommendation is that the industrial warehouse you rent should be an established space, with permits and licenses for its operation, since the stored goods are a great investment and you need to corroborate that the site is safe and reliable.
If you want to know more information about the wineries, we suggest you to read:
“Wineries: trends, projections and recommendations for the sector after the pandemic”.
Likewise, you should know what services are available: parking, office area, loading and unloading area, restrooms, leveling ramps, as well as the construction material and contracting conditions.
In some cases, additional (non-common) services are provided. such as moving, periodic fumigation, storage tools, convenience store (selling locks, boxes, shelves, packaging), insurance policies, perimeter alarms, advice on location (according to a market analysis), legal scheme of operation and site management (8).
Other recommendations that stand out are (9):
- Make strategic use of space and keep your inventory organized. This serves to avoid problems not only in logistics, but also in the conservation of products, because if you stack fragile equipment, do not keep track of the expiration date of your items or do not have a record of all of them, you can affect the release of goods, the fulfillment of delivery times and accumulate complaints from customers in this regard.
- Continuously trains personnel. This is significant, as they must be prepared for the correct handling of the items, in order to avoid accidents that could damage personnel or the goods they operate. In addition, it is essential to reduce risks and costs, and to optimize the performance of your warehouse in accordance with safety and hygiene measures.
- Creates effective distribution systems. This is key, especially since the operation of an industrial warehouse is equivalent to large volumes of goods. Therefore, it is very useful to trace systematic and automated routes for order processing, 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, well managed by the staff, for the arrangement and quick location of the products, since the rotation of items is a function and an objective at the same time, so creating systems of storage, location and arrangement of the merchandise is vital to expedite its entry and exit from the warehouse.
- Upgrade your equipment. Although costly, having adequate and current equipment is essential for both safety and productivity. In this case we are referring to cabinets, containers, shelves, racks, refrigeration equipment (if you handle perishable items), among other devices that allow us to locate, maintain and transport products without major problems.
We also suggest you to consider digital strategies with a digital marketing agency
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 right advice. In Vallejo Properties we give you the attention you need. Do not hesitate to contact us.
Conclusions
Having a space that centralizes your operations in an area with activities similar to your industry, or at least industrial, allows you to acquire an important 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, at Vallejo Properties we support you to expand your business.
References
- CBRE. Industrial market: CDMX, Guadalajara and Monterrey. CBRE, 2020. Accessed May 25, 2020.
- INEGI. Industrial activity. National Institute of Statistics and Geography (INEGI), 2020. Accessed May 26, 2020.
- Flex. Blog. Flexpark, 2018-2019. Accessed May 24, 2020.
- CLIS. Characteristics of a good industrial winery. Siberia Industrial Logistics Complex (CLIS), 2017. Accessed May 26, 2020.
- Santa Cruz Winery. 8 benefits of a warehouse in an industrial park. Bodegas Santa Cruz, 2019. Accessed May 26, 2020.
- CBRE. 1Q 2020 closed with more than 200 thousand sq m of gross absorption, 35% higher than 1Q 2019. (in PDF). CBRE Research, 2020. Accessed May 25, 2020.
- AIVAC. Aivac. Asociación Industrial Vallejo, A.C. (AIVAC), n/d. Accessed May 25, 2020.
- Cindi Islas. Storage franchises in Mexico, innovative investment ideas. Franchising Today, 2015. Accessed May 25, 2020.
- Logycom. 5 points to know if you need to rent a warehouse. Logycom, s / f. Accessed May 26, 2020.
