FIBRA Prologis Q1: occupancy hits 98.1%, Mexican operations show strength

Industrial real estate in Mexico is having a reality check moment. The big question has been whether trade tension and slower decision-making would finally crack demand for logistics space. FIBRA Prologis just gave a pretty clear answer for now — not really. Its first-quarter 2026 results, released April 29, showed occupancy still high, rents still rising fast, and leasing activity still moving across the portfolio. (fibraprologis.com) ### What exactly did FIBRA Prologis report? The headline numbers were strong, even if they were a touch softer than the very hottest period last year. Period-end occupancy came in at 97.0%, average occupancy at 97.4%, customer retention at 81.2%, and same-store cash NOI growth at 9.9%. Net effective rents on rollover jumped 59.6%, and net earnings per CBFI rose to $0.1067 from $0.0985 a year earlier. (fibraprologis.com) ### Why does 97% occupancy still matter? Because this is not a market where landlords need perfection to have leverage. Once an industrial portfolio stays in the high-90s, tenants have fewer easy alternatives, especially in the core border and consumption markets. FIBRA Prologis said five markets we(fibraprologis.com)h for landlords to keep pushing rents. (fibraprologis.com) ### Where is the real strength showing up? In rent spreads. A 59.6% net effective rent change on rollover is the kind of number that says embedded pricing power is still working through the portfolio. Same-store cash NOI growth of 9.9% came from that rent change, annual rent bumps, and foreign-excha(fibraprologis.com)t from leases signed in a much tighter market. (fibraprologis.com) ### Did leasing demand actually hold up? Yes — and the scale matters. FIBRA Prologis said 3.6 million square feet of leases commenced in the quarter, mainly in Mexico City and Juarez. That was up from 3.0 million square feet in the first quarter of 2025. So this was not just a story of old leases resetting at higher rents. Space is still turning over and getting absorbed. (fibraprologis.com) ### What got weaker? Retention and occupancy both eased from last year’s unusually strong levels. In the first quarter of 2025, period-end occupancy was 98.8%, average occupancy was 98.1%, and retention was 93.6%. This quarter’s 97.0%, 97.4%, and 81.2% are still healthy, but they show a more balance(fibraprologis.com)balanced and pointing to ongoing trade uncertainty. (fibraprologis.com) ### How does this fit with the bigger Prologis picture? It lines up with what the parent company has been saying globally. Prologis reported record lease signings of 64 million square feet in its logistics business for the same quarter and said customer demand stayed resilient despite geopolitical u(fibraprologis.com)cooled from peak frenzy, not collapsed. (prnewswire.com) ### Is the balance sheet still giving it room? Yes. As of March 31, 2026, leverage was 25.0% and liquidity was about $1.1 billion, including $990 million available on its unsecured credit facility plus $76 million of cash. That matters because it gives FIBRA Prologis room to keep investing, refinancing, and handling slower patches without needing a perfect market every quarter. (fibraprologis.com) ### Bottom line The clean read is that Mexico’s top-tier logistics market is no longer running at peak heat, but it is still fundamentally tight. FIBRA Prologis is proving that the important engine here is not just full buildings — it is the ability to reset rents sharply higher while keeping occupancy comfortably in the high 90s. That is a strong place to be.