E-commerce is redrawing Mexico’s logistics map. Understanding how — and where — it impacts demand for industrial space is today a competitive advantage for any company.

A Market That Never Stops Growing

Mexican e-commerce underwent an unprecedented transformation starting in 2020. That year, driven by the pandemic, the sector grew 81%, rising from 316 billion pesos to reach 941 billion pesos by 2025. In just five years, the market nearly tripled in size.

This growth doesn’t happen in a vacuum. Every online purchase involves a chain of physical processes: storage, order preparation, packaging, and delivery. All of those processes require industrial space. The question is: how much space, what kind, and where?

The Engine Behind Industrial Demand in Mexico City

The data is striking: the logistics and e-commerce sector accounted for 53% of total industrial space transactions in the Mexico City Metropolitan Area in 2024, surpassing even traditional manufacturing activity in this corridor.

Companies such as Mercado Libre, Amazon, Walmart, Coppel, Liverpool, and AliExpress leased more than 1.1 million square meters of industrial space between 2020 and 2023, with 90% concentrated in Mexico’s largest cities. The signal is clear: e-commerce doesn’t just move products — it moves real estate markets.

What Kind of Space Does E-Commerce Require?

Not every industrial building works for e-commerce. Online retail operations have very specific requirements that have redefined what gets built — and where.

In-Fill and Last-Mile Spaces

Digital consumers demand fast delivery, ideally same-day or next-day. This forces companies to bring their inventory closer to the end consumer, inside urban areas. In-fill spaces — located within established urban fabric — and last-mile distribution centers are the architectural answer to this demand.

In Mexico City, just a few years ago there were one or two projects exclusively dedicated to last-mile logistics. Today, around 12 such spaces are registered, positioning the capital as the country’s most developed city for this segment.

Technical Features That Matter

Industrial buildings designed for e-commerce and last-mile are defined by:

• Location with direct access to main arterials and high nearby residential density
• Higher dock-to-area ratio for loading and unloading (cross-docking ready)
• Clear heights that allow mezzanines for picking and order preparation
• Multi-front road connectivity for simultaneous inbound and outbound flows
• 24/7 security and video surveillance systems suited to the operation

Specialized Inventory Shortage: A Challenge and an Opportunity

The last-mile market in Mexico City faces a structural imbalance: demand far outpaces available supply. By the first half of 2024, the specialized inventory barely reached 598,000 m² — a figure the market had already exceeded in requirements. As a result, rental prices have reached historic levels, averaging USD $9.95 per m² across the city’s main corridors.

This tension between supply and demand makes urban industrial space development one of the most resilient and highest-potential assets within Mexico’s real estate sector.

Nearshoring + E-Commerce: A Combination That Multiplies Demand

On top of e-commerce growth comes nearshoring: the relocation of manufacturing and operational facilities to Mexico as companies diversify their global supply chains. Mexico’s logistics market reached a value of USD $31.7 billion in 2024 and is projected to grow at a compound annual rate of 10.2% between 2025 and 2034.

Both forces — e-commerce and nearshoring — point in the same direction: more companies needing more industrial space, in strategic locations, with increasingly sophisticated specifications.

The Fastest-Growing Corridors in Mexico City

The industrial urban corridors with the highest activity and absorption in Mexico City are concentrated in areas with strong road connectivity and proximity to consumer centers:

• North Corridor (Vallejo, Gustavo A. Madero): high urban density and access to the north-south distribution network
• East and Northeast Corridors: connection to the State of Mexico industrial zone
• Southeast and Central Corridors: proximity to high-demand consumer delivery areas
• West Corridor (Santa Fe, Cuajimalpa): access to corporate and high-value residential markets

What Does This Mean for Your Operation?

If your company operates in e-commerce, retail, distribution, or consumer-facing manufacturing, the choice of industrial space is no longer a secondary decision. It is a strategic asset that defines your delivery capacity, operating costs, and ultimately, your customer experience.

The right combination of location, design, and connectivity can be the difference between fulfilling a same-day delivery promise — or losing a customer to a better-positioned competitor.

O’Donnell has spent 30 years developing strategic industrial spaces across Mexico, specializing in in-fill and last-mile properties within the country’s main urban markets. Want to explore our available properties? Visit odonnell.com.mx