Mexico City’s Vallejo District to Expand its Industrial Zone

Mexico City Mayor Claudia Sheinbaum announced the expansion of the Industrial Zone of Vallejo. New companies, especially those focused on manufacturing, are moving their operations there, as are maintenance providers to key Mexico City infrastructure projects.

During a meeting with real estate developers, Sheinbaum reported that authorities approved a partial plan for the Vallejo Industrial Zone in 2021. She added that Vallejo has a great potential to host different kinds of property developments because the city area has all the required urban amenities. “Vallejo is an industrial zone par excellence and we want to keep it that way, there are several investments coming, including [toward] warehouses and Doppelmayr, the Austrian company that built Mexico City’s cableway system, which is constructing a spare-parts center for Latin America,” Sheinbaum added. 

According to Fadlala Akabani, the local Minister for Economic Development, the government’s objective is to recover spaces and provide guarantees to the area’s infrastructure to get new companies to set up shop, not just in Vallejo but elsewhere in the city, too. He highlighted the recently improved permit granting process for the construction sector, which sped up paperwork and granted tax reductions.

The Partial Plan for the Vallejo Industrial zone is designed to drive urban development up to 2050. It aims to add complementary services, public spaces and affordable housing for workers other than its focus on industrial development, featuring over 163 properties available for development. In 2021, Vallejo launched a waste recycling plant and transfer station, with a capacity of processing over 1,400 tons of solid waste per day, as well as its Center for Technological Development and Innovation to develop projects with private, public and academic researchers. 

“Currently we have 1,000 construction projects carried out simultaneously across the city. We want to increase that number to more than 1,100 and we have 85 pending authorizations to reactivate the city’s economy,” Akabani added. 

Akabani said that finance and industrial sectors have boosted real estate investments. He highlighted the investments made by Netflix, Amazon, Mercado Libre, O’Donnel, Fedex and Doppelmayr as critical for Vallejo. Furthermore, he reported that new companies are moving their operations to the area, including Nestlé, Thomsoms Reuters and Siemens Energy. 

Over 80 percent of Vallejo’s industrial warehouses are occupied. Therefore, it is possible to improve and expand them by over 5,000m². Akabani said that an investment of over US$25.5 million is to be announced by a foreign company, but he did not provide further details.