Vesta noted that the current environment marks an unprecedented opportunity for industrial real estate and business itself in Mexico.
As advantages for global companies operating in Asian countries erode, interest in reshoring and nearshoring continues to increase, Vesta said in its quarterly report.
Resultados financieros de Vesta
Companies are faced with the need to address demand, particularly for e-commerce, as well as in the emerging medical device and electronics industries.
Vesta is a fully integrated company that owns, manages, acquires, sells, develops and redevelops industrial properties in Mexico.
As of September 30, 2022, Vesta had 194 properties located within modern industrial parks in 15 Mexican states.
While the company’s total leasable area was 3.00 million m2 (32.3 million ft²), the company’s clients operate in diverse industries, including e-commerce, aerospace, automotive, food and beverage, logistics, medical devices, and plastics, among others.
Meanwhile, Vesta’s Q3 2022 operating results again reached record highs, with 3.8 million square feet of leasing activity; 1.0 million square feet of new leases; and 2.8 million square feet of renewals from existing customers.
The current exceptional supply and demand dynamics have resulted in leasing buildings that are still under construction, a trend the company has seen over the past two quarters.
Vesta’s clients are renewing leases averaging seven years, underscoring its long-term commitment within Mexico.
Its total portfolio again achieved record occupancy of 96.1%, while stabilized portfolio and same-store occupancy increased to 96.6% and 96.4%, respectively.
Similarly, the company is working to ensure that its development portfolio keeps pace with the strong demand it is seeing, in line with its Level 3 strategy.
Vesta broke ground on five new buildings during the third quarter, adding 1.3 million square feet to reach 3.2 million square feet under development: an estimated investment of US$188.9 million with a return on cost of 10.0 percent.
Notably, the company increased its presence within a key metropolitan area during the quarter.
In August, the company acquired 8.7 acres of land in the heart of Mexico City. This prime property is a historic asset for Vesta and one of the last parcels of land available in the Mexico City metropolitan area.
From Vesta’s perspective, this unique downtown location is highly desirable for e-commerce and logistics companies, within a densely populated metropolitan area with a sizable workforce and excellent connectivity to major highways and roads.