Overview of the Industrial Real Estate Sector in Mexico
The industrial real estate sector in Mexico is currently experiencing a phase of adjustment due to tariffs imposed by the United States and reconfigurations in international trade relations.
Decline in Occupation and Construction
This cautious environment has started to reflect in warehouse rentals and the pace of new industrial warehouse construction.
- Between July and August 2025, the occupation of industrial spaces totaled 887,000 square meters, marking a 34% annual drop compared to the same bimester in 2024, according to a Solili analysis.
- The report states that changes in investment and expansion expectations within the sector have impacted both new project developments and industrial property occupation dynamics.
Uneven Impact Across Mexican Markets
The slowdown’s effect wasn’t uniform across the country. While most markets saw demand drops, the Mexico City market stood out with a 29% increase in industrial property occupation.
- Mexico City captured 28% of industrial space investment during this period, followed by Monterrey, Nuevo León with 26%, and Ciudad Juárez, Chihuahua with 9%.
- In contrast, Tijuana, Baja California accounted for 40% of industrial vacancies nationwide, making it the most affected market due to reduced operations.
Slowdown in Construction Initiatives
The development pace also contracted. Between July and August 2025, new industrial construction initiatives in Mexico totaled 795,000 square meters, a 26% decrease compared to the same period in 2024.
- Mexico City once again led the way with 38% of new projects, followed by Monterrey and Querétaro, each with 12%.
- Meanwhile, northern markets specializing in manufacturing proved more vulnerable to tariffs. Cities like Tecate, Ciudad Juárez, Reynosa, and Chihuahua reported no new developments during the period.
Stability Amidst Caution
Although the current scenario reflects cautious investments, Solili warns that the sector maintains solid foundations during this transition period following the “nearshoring boom.”
The sector is adapting to changes in global trade dynamics and continues to attract investments in key regions. Although the market shows increased prudence, its structural strength allows it to keep growing with future stability prospects.
– Solili
Key Questions and Answers
- What is causing the slowdown in Mexico’s industrial real estate sector? The primary factors are tariffs imposed by the United States and reconfigurations in international trade relations, leading to cautious investments.
- Which markets have been most affected by this slowdown? Tijuana, Baja California has experienced the highest industrial vacancy rate at 40%, while northern manufacturing-focused markets like Tecate, Ciudad Juárez, Reynosa, and Chihuahua have seen no new developments.
- How has occupation and construction changed in Mexico’s industrial real estate sector? Occupation dropped by 34% annually between July and August 2025 compared to the same period in 2024, while new construction initiatives decreased by 26%.
- What is the outlook for Mexico’s industrial real estate sector? Despite caution, the sector maintains solid foundations and continues to attract investments in key regions with future stability prospects.
