ProximityParks Invests MX$600 Million - Mexico City Logistics Hub

Summary: ProximityParks has launched construction of its MX$600 million Iztapalapa III development in Mexico City, repurposing a former furniture factory into a 24,000m² last-mile logistics hub designed to support e-commerce, distribution efficiency and urban delivery operations. The project will generate more than 800 direct jobs and incorporate solar panels, electric vehicle charging infrastructure and workforce education facilities. It forms part of the company's strategy to increase assets under management from nearly US$700 million to US$1 billion within three years through approximately US$100 million in annual investments across Mexico City, Monterrey and Guadalajara.

ProximityParks has begun construction of ProximityParks Iztapalapa III, a MX$600 million industrial development designed to expand last-mile logistics capacity in Mexico City. The project will transform a former furniture factory into a distribution hub spanning more than 24,000 m2, generating more than 800 direct jobs during its development and subsequent operation.

Located in Iztapalapa, the complex will serve logistics and e-commerce companies seeking to position inventory closer to consumers in the eastern part of the capital. The investment reflects growing demand for urban distribution infrastructure as online shopping reshapes delivery requirements, fleet utilization and warehouse location strategies.

The project also forms part of ProximityParks’ broader expansion strategy, which targets US1billion in assets under management within three years.Thecompany plans to deploy approximately US100 million annually, adding four to six urban locations to its portfolio each year. 

Urban Logistics Drives Investment in Iztapalapa

The development will repurpose a property that operated as an office furniture factory for more than four decades before becoming inactive. ProximityParks identified its potential for urban logistics more than five years ago, recognizing an opportunity to convert an underutilized industrial asset into infrastructure serving Mexico City’s distribution network.

Rather than developing a new facility on undeveloped land, the company is investing in the rehabilitation of existing industrial infrastructure. The location is intended to reduce the distance between distribution facilities and final delivery points, helping tenants manage transportation costs, delivery times and fleet operations.

For e-commerce operators and logistics providers, proximity to consumers has become an operational consideration as delivery expectations evolve. Establishing inventory within densely populated urban areas can support more efficient distribution while reducing the need for longer transportation routes.

Mario Berlanga, CEO and Co-Founder of ProximityParks, said the project would become a reference point for last-mile logistics in the region, combining investment with economic and social development in Iztapalapa and Mexico City.

The development also reflects the company's broader approach to urban real estate: identifying locations where existing infrastructure can be adapted to address specific commercial requirements. 

Sustainable Infrastructure Supports Last-Mile Operations

Beyond its distribution capacity, ProximityParks Iztapalapa III will incorporate infrastructure intended to reduce the environmental impact of its operations. The project will pursue LEED certification and include solar panels, electric vehicle charging stations and bicycle parking.

These features are relevant to logistics operators evaluating the transition toward electric delivery fleets. Charging infrastructure within distribution facilities can support the integration of electric vehicles into last-mile operations, where vehicle range, delivery density and access to charging facilities influence fleet deployment.

The development will also include an educational classroom operated by Fundación Construyendo y Creciendo. The organization establishes learning spaces at construction sites, allowing workers to continue their education or develop new skills before or after their shifts and during breaks.

This component adds a workforce development dimension to the investment, connecting industrial construction with training opportunities for employees.

During the groundbreaking ceremony, Manola Zabalza, Mexico City’s Minister of Economic Development, highlighted the relationship between logistics infrastructure and changing consumption patterns.

She noted that nearly one in four children and adolescents in the capital live in Iztapalapa, underscoring the importance of preparing for growing demand for digital commerce, remote work and online shopping among younger generations.

The combination of distribution infrastructure, sustainability features and workforce development illustrates how the project is intended to address both commercial requirements and broader urban needs. 

ProximityParks Targets US$1 Billion in Assets

Iztapalapa III represents one component of ProximityParks’ expansion program, which seeks to increase its assets under management from nearly US700 million to US1 billion over the next three years.

Berlanga told MBN that achieving this target will require approximately US$100 million in annual capital deployment and the addition of four to six urban locations each year. The company currently operates 17 active sites and has several acquisitions in its investment pipeline, some of which are expected to close before year-end.

Its development strategy covers major commercial and industrial markets, including Mexico City, Monterrey and Guadalajara. Two of its parks are already associated with projects under Plan México, while six others are undergoing the process, including Iztapalapa III.

The expansion is aligned with the company's Triple-Net-Positive framework, which seeks to combine financial returns with improved tenant efficiency and sustainable urban development. 

Specialization Shapes the Company's Expansion Strategy

ProximityParks’ growth has been guided by a business model focused on addressing specific real estate and logistics challenges rather than pursuing unrelated opportunities.

Berlanga said the company initially sought to solve last-mile distribution challenges through vertical warehouses. Its corporate logo, featuring a three-story warehouse, reflects that original concept.

However, operational limitations in Mexico led the company to shift toward horizontal urban optimization, emphasizing the strategic positioning and efficient use of logistics facilities within metropolitan areas.

“Specialization allows you to obsess over a specific problem, but you must remain flexible about the solution,” Berlanga said.

The approach places tenant requirements at the center of investment decisions, with market adaptation informing how projects are designed and deployed.

As ProximityParks expands its portfolio, Iztapalapa III demonstrates how industrial property reuse, urban distribution demand and sustainability infrastructure are converging within Mexico's logistics real estate market. The company's planned capital deployment will further test the scalability of this model across the country's principal urban centers.