Introduction to Monterrey’s Industrial Real Estate Market
Monterrey, the capital of Nuevo León and a key player in México’s industrial real estate market, is experiencing a slowdown in the occupation of industrial warehouses due to trade uncertainty caused by the implementation of tariffs by the United States.
Current Situation
According to the latest analysis by Solili, as of the end of Q2 2025, more than 1 million square meters (m²) of industrial real estate space in Monterrey’s capital is currently vacant, accounting for 5.4% of the total industrial space.
Comparison with 2024
This volume of vacant space is three times higher than the same period in 2024, highlighting a shift in the industrial real estate market dynamics in the region that previously boasted record occupation rates.
Reasons for Increased Vacancy
Solili attributes the rise in vacancy to three main factors: the constant completion of speculative projects, a slowdown in demand, and a significant increase in unemployment levels.
“The global economic and political environment has exerted a significant influence on Mexico. Internationally, geopolitical tensions, fluctuating inflation in key economies, and monetary policies by central banks have created a climate of uncertainty,” explained Solili.
Recent Developments
- Between April and June, approximately 260,000 m² of speculative warehouses were added to the inventory by companies such as Prologis, Vynmsa, and Vesta.
- During the same period, 215,000 m² were abandoned, notably a user’s exit in the Santa Catarina corridor, which released over 110,000 m².
National Market Overview
The slowdown in industrial warehouse occupation is not exclusive to Monterrey. Nationally, the industrial vacancy rate shows an upward trend.
Currently, there are 4.3 million m² of available industrial space across Mexico, according to Solili.
Despite the demand not matching previous years’ pace due to the nearshoring boom, some developers remain active with new projects in the market. In Q2 alone, 87 new industrial warehouses were identified.
In Q2 2025, only 937,000 m² of industrial space was occupied, one of the lowest figures since 2021 and 37% lower compared to the same period in 2024.
“There has been a deceleration in nearshoring compared to initial expectations. As we look ahead to the second half of the year, the Mexican industrial real estate market is going through an adjustment phase. While macroeconomic factors and global dynamics will continue to influence the market, internal capacity within the country will be crucial in overcoming challenges,” added Solili.
Key Questions and Answers
- What is causing the slowdown in Monterrey’s industrial real estate market? The slowdown is primarily due to trade uncertainty caused by the implementation of tariffs by the United States, combined with factors like speculative project completions, slowing demand, and rising unemployment.
- How does the current vacancy rate in Monterrey compare to 2024? The current vacancy rate is more than three times higher than in the same period of 2024, with over 1 million m² currently available.
- Is this slowdown limited to Monterrey, or is it a nationwide issue? This slowdown is not exclusive to Monterrey; the industrial vacancy rate shows an upward trend nationally with 4.3 million m² of available space.
- What is the current occupancy rate for industrial warehouses in Mexico? In Q2 2025, only 937,000 m² of industrial space was occupied, one of the lowest figures since 2021 and 37% lower compared to the same period in 2024.
