Market Overview and Key Figures
During the first quarter of 2025, Monterrey’s industrial market saw a gross absorption of 222,000 square meters. This represents a 210.2% increase compared to the same period in 2019 and a 23.4% rise over January-March 2020, before the Covid-19 pandemic.
The high commercialization of industrial spaces is attributed to the Mexico-US-Canada trade agreement (T-MEC), e-commerce growth due to the pandemic, and adjustments in supply chains related to nearshoring. This information comes from CBRE Mexico’s industrial market report for Monterrey.
Healthy Indicators with Rising Vacancy
Despite healthy market indicators, vacant space has increased due to new offerings added to existing inventory and net absorption amidst tariff uncertainty.
The existing inventory closed at 16.4 million square meters after incorporating 329,000 square meters of new offerings. Construction initiatives reached 401,000 square meters, with 76% of that space available, reflecting investor confidence in the market.
This activity maintains construction at over 1.1 million square meters, reaching historical highs. The Apodaca submarket accounted for half of this growth.
Rising Vacancy Rate
New offerings added vacant space to the existing inventory, along with 191,000 square meters unoccupied during the first quarter, drove the vacancy rate growth to 5.1%, returning to late-2021 levels.
CBRE Mexico expects this occupancy rate to be temporary, as 60% of the quarterly figure stems from a single automotive company moving out of the city’s east side.
Declining Net Absorption
Net absorption for the first quarter closed at 131,000 square meters, primarily driven by pre-leased property deliveries. Although positive, it has been declining since its historical peak at the end of 2023. Net absorption remains healthy, with 64.8% above pre-pandemic levels.
CBRE Mexico anticipates that long-term company perspectives, the domestic market in Mexico, and understanding of new international trade policies will sustain industrial market dynamism in Monterrey throughout 2025.
Key Questions and Answers
- What is the current state of Monterrey’s industrial market? The market shows healthy indicators, but vacant space has increased due to new offerings and uncertainty around tariffs.
- What factors contributed to the high commercialization of industrial spaces? The T-MEC trade agreement, e-commerce growth due to the pandemic, and nearshoring supply chain adjustments have driven this trend.
- Why is the vacancy rate increasing? New offerings and unoccupied spaces during the first quarter have pushed the vacancy rate to 5.1%, similar to late-2021 levels.
- What is the outlook for net absorption in Monterrey’s industrial market? Net absorption is expected to remain healthy, supported by long-term company perspectives, a robust domestic market in Mexico, and understanding of new international trade policies.
