In Mexico City, “cheap square feet” get expensive if you’re far away

In Mexico City, the challenge is no longer just finding square meters, it’s finding the right location. Traffic, delivery-hour restrictions, congested roadways, and the pressure to deliver faster mean that an operation that’s “far but cheap” starts paying the real cost in kilometers, time, and complexity.

When last-mile becomes both the biggest expense and the biggest risk, the question changes: how do you grow without leaving the city? That’s where vertical warehouses become a logical option for last-mile, e-commerce, and micro-fulfillment.

1) What is a vertical warehouse?

Simple definition: a multi-level logistics building designed for storage/fulfillment with controlled flows.

2) Why are they growing?

  • In-fill: there’s no industrial land left in prime urban areas.
  • Last-mile: distance matters more than “cheap m².”
  • E-commerce: more SKUs, more speed, more returns.

3) Operational advantages (the real ones)

  • Location: fewer kilometers = lower cost and faster delivery.
  • More capacity where it matters (usable m² in urban zones).
  • Phased scalability (you can grow level by level).
  • Better operational control (zones by level: inbound / storage / picking / packing / returns).

4) Challenges—and how to solve them (no hype)

  • Vertical flow: pallet elevators / freight lifts / conveyors.
  • Bottlenecks: peak hours, insufficient staging, last-mile surges.
  • Security and operations: clear rules, circulation, signage, access control.
  • Power and technology: requirements for light automation (sorters, conveyors, WMS).

5) What types of operations benefit the most?

  • E-commerce / omnichannel retail
  • Parcel and last-mile delivery
  • Dark stores / micro-fulfillment
  • Spare parts / pharma / high-mix (high SKU count and turnover)

6) Quick checklist (for a lead magnet)

  • Do you have major shipping peaks?
  • Do you need to be within X minutes of the customer?
  • Is your operation more picking than ultra-high racking?
  • Do you need clear areas for returns and refurbishing?
  • How many dock doors (gates) and how much staging do you need?

7) Vertical vs. traditional warehouse (quick mental comparison)

  • Traditional: cheaper m², more yard space, more distance
  • Vertical: closer, higher productivity per m², requires strong flow engineering

If your goal is to reduce distance and increase speed, a vertical warehouse may be your next step up. We can help you validate capacity, flow, and layout.

Schedule a tour:ebecerril@odonnell.com.mx | Mobile: +52 56 4160 1673

O’Donnell is one of the leading industrial real estate investment & development firms in Mexico.

The firm is focused on developing logistics industrial buildings, in-fill, last-mile, in major markets throughout the country.

 

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+52 55 56 4160 1673
marketing@odonnell.com.mx
Edificio One o One, Av. Juan Salvador Agraz 65, piso 7A. Col. Santa Fe Cuajimalpa, Alcaldía Cuajimalpa de Morelos, C.P. 05348, CDMX.