Logistics Sector Shifts to Verticality Amid Land Scarcity

Logistics companies in Mexico are transitioning toward vertical optimization in existing facilities to counter land scarcity and a 2.2% industrial vacancy rate, according to Mexico-based storage systems provider PM STEELE. Similarly, vertical logistics parks are also gaining steam amid increasing last-mile needs.

With industrial warehouse availability currently at 2.2%, companies are shifting their focus from land acquisition to the vertical potential of their existing facilities. This move toward vertical optimization serves as a strategic response to space shortages, allowing for facility improvements in reduced timeframes.

In this environment, PM STEELE notes that growing upward has become a decisive measure to maintain the flow of goods without waiting for the construction of new industrial parks. Rather than seeking external land, companies are redesigning warehouse interiors using self-supporting rack systems. These structures are engineered to organize cargo while simultaneously acting as the primary structural base that supports the building’s roof and walls.

Manuel Farías, Deputy Director of Storage Systems, PM STEELE, noted that the priority in 2025 shifted from acquiring square meters to maximizing the efficiency of every available area.  "Companies are realizing that leveraging height generates higher yields than searching for more land. When a warehouse grows upward without halting operations, it gains immediate flexibility and paves the way for future automation," Farías added.

This model has gained relevance across several industries, including food and beverages, retail, e-commerce, pharmaceuticals, and third-party logistics (3PL). In these sectors, every cubic meter is critical. Self-supporting racks allow these companies to integrate robotic technology progressively as demand requires, without the need to rebuild the property or stop daily workflows. This approach is essential for supply chains operating under high-precision standards.

By the start of 2026, the trend of optimizing internal space has consolidated as the most agile alternative to land saturation. Current market experience indicates that utilizing height addresses immediate storage emergencies while establishing the necessary foundation for automated processes.

Other Ways of Verticality for Land Optimization

While internal racking systems optimize existing footprints, developers like Interlogix are pioneering the construction of multi-story vertical logistics parks to solve the scarcity of large industrial plots. In an interview with MBN, Eduardo Neuman, CEO, Interlogix, said that urban centers like Mexico City, where finding horizontal plots of 10,000m² to 15,000m² is no longer feasible, verticality allows developers to maximize smaller plots of land starting from 1,500m². This structural shift is designed to prioritize last-mile logistics by placing inventory closer to the end consumer.

Neuman notes that the model is not new, drawing inspiration from vertical warehouses that have been common in Asia for 20 years and the conversion of underperforming suburban shopping centers into delivery hubs in the United States. However, adapting this approach to the Mexican market presented significant logistical and infrastructure hurdles. Unlike horizontal developments that follow a cookie-cutter approach, each vertical plot requires a unique design to manage complex variables such as maneuvering yards, floor loads, docks, and heights within the constraints of local regulations.

Despite complexities, the value proposition for tenants is high. Companies can improve delivery times by up to 70% by being located just a few kilometers from their customers. This proximity also offers environmental benefits, significantly reducing carbon footprints by minimizing transportation distances.