When a company looks for a logistics facility, it is not thinking in terms of square meters. It is thinking about delivery times, distribution costs, access to transportation networks, and labor availability. Real estate is the means—not the end. And once you understand that, you begin to see the market through a different lens.
Net absorption totaled 15,170 sqm in the first quarter of 2026, marking a sharp decline from the 85,385 sqm recorded at the end of last year. At first glance, the figures may suggest a weakening market. But two factors point to a different conclusion. First, the year-over-year comparison: in the first quarter of 2025, net absorption was negative, totaling nearly 28,000 sqm. Second, the market's underlying fundamentals remained stable. Vacancy held at 6.5%, while average asking rents stayed at USD 7.2 per sqm per month, unchanged from the previous quarter. A market experiencing a genuine slowdown rarely maintains that combination of indicators.
What is changing, however, is the way the market is growing—and that shift is more significant than the absorption figures themselves.
For years, a substantial share of new supply entered the market through speculative development, with developers building in anticipation of future demand. That model worked while the market was expanding rapidly. Today, the dynamics are different. New projects typically move forward only once there is greater commercial certainty—often when a specific occupier has already committed to the project. The recent announcement of a new build-to-suit facility for Mercado Libre in Escobar is a clear example of this trend. Rather than being developed speculatively, the project is a direct response to a defined occupier's requirements. Demand is driving supply, creating a more predictable and resilient market than in previous years.
This same dynamic also explains the geographic distribution of market activity. The Northern Corridor accounted for the largest share of quarterly net absorption, particularly in the San Eduardo Triangle and "Radio 2". These submarkets offer the strongest infrastructure, superior connectivity, and a well-established logistics ecosystem. Companies are not choosing these locations out of habit—they are choosing them because they make operational sense. At the other end of the spectrum, the Southern Corridor recorded a vacancy rate of just 1.4%, leaving virtually no available space. This reflects sustained occupier demand in a corridor that still has room for additional supply.
Looking ahead, approximately 194,000 sqm are currently under construction, primarily in the Northern Corridor. Most of these projects are being developed under pre-committed agreements with specific occupiers. This is not speculative development—it is demand-driven development. In a market where vacancy remains structurally low, that distinction matters. It reflects an industrial sector that has learned to grow in a more disciplined and sustainable way.
For companies evaluating industrial real estate decisions, the market outlook is clear: high-quality assets in established locations are being absorbed quickly and offer limited room for negotiation. Opportunities remain, but capturing them requires strategy, market intelligence, and timely decision-making.
The industrial market did not grow less this quarter—it grew differently.
