Introduction to Monterrey’s Industrial Real Estate Market
Monterrey, NL – Uncertainty surrounding potential changes in U.S. tariffs has led to a slowdown in industrial real estate investments in Monterrey. This uncertainty has resulted in increased availability and inventory, according to Sergio Resendez, General Director of Colliers in Monterrey.
The Impact of Tariff Uncertainty
The pause in investment decisions is not due to project cancellations, but rather the ambiguity regarding which tariffs the U.S. will implement. Resendez explained, “Given our strong interconnection with North America, some suppliers may be affected depending on their position in the supply chain.”
This uncertainty, combined with developers’ existing construction projects for industrial spaces, has further increased inventory and available spaces.
Market Overview from Colliers’ Report
According to Colliers’ Monterrey Industrial Market Report, by the end of the second quarter, 1,867 Class A and B warehouses totaling 23.2 million square meters were being monitored, with an inventory increase of 653,635 square meters—a 49% rise compared to the same period last year.
- New developments added in the second quarter and located in Apodaca, Guadalupe, Santa Catarina, Escobedo, Ciénega de Flores, and Salinas Victoria.
- By the end of the second quarter, 84 industrial properties (Class A and B) under construction were being monitored, totaling 2.1 million square meters, expected to finish by the end of this year and early 2026.
Absorption Rate in the Industrial Market
The net absorption accumulated in the second quarter was 398,975 square meters, a 30% decrease from the same period in 2023 and a 46% decrease compared to April-June of the previous year.
“Remember that availability percentages were at 1% in the third quarter of 2023; now they represent 5.66%, indicating that there is more available space,” Resendez emphasized.
Positive Developments in the Market
Resendez assured that Monterrey’s industrial real estate market remains healthy, with a significant number of buildings or warehouses being sublet.
For instance, a company that purchased a 20,000 square meter building last year, expecting continued economic growth, now decided to sublet the space instead of occupying it in the short term.
Resendez stated that this is a temporary situation that will become clearer as companies make decisions, regardless of the tariffs applied. “We trust that businesses will gradually make decisions and occupy spaces; we are still in the healthy single-digit availability range, hoping this trend continues.”
Key Areas of Focus
Resendez mentioned that Colliers will monitor the market during the third and fourth quarters to see if the investment pause continues.
“One of our yellow flags is the review of the USMCA, as tariff matters are handled through executive orders that aren’t definitive. Ultimately, trade policy must go through the U.S. Congress; with a review, we would be better prepared to know if there will be any changes in trade policy.”
Key Questions and Answers
- What is the current state of Monterrey’s industrial real estate market? The market faces uncertainty due to potential U.S. tariff changes, leading to increased availability and inventory.
- How has tariff uncertainty affected investments? It has caused a pause in investment decisions, not due to project cancellations but ambiguity about future tariffs.
- What is the current absorption rate in Monterrey’s industrial market? The net absorption rate has decreased by 30% compared to the same period in 2023 and 46% compared to April-June of the previous year.
- What positive developments are there in the market? There is a significant amount of subletting activity, indicating that companies are adapting to the current market conditions.
- What factors is Colliers monitoring in Monterrey’s industrial market? Colliers is keeping an eye on the USMCA review and the potential for tariff policy changes through the U.S. Congress.
