Nearshoring Keeps Industrial Leasing Red-Hot in Northern Mexico

Industrial leasing momentum shows no sign of slowing in Mexico’s northern hubs. Monterrey led the country with more than 1.8 million square meters absorbed in 2024, while Saltillo and Tijuana also posted record take-up. Vacancy rates in these markets have compressed below 3%, creating sustained upward pressure on rents, which rose 15–20% year-on-year. This demand surge is being driven by multinational manufacturers—particularly in the automotive, aerospace, and electronics sectors—seeking to relocate closer to U.S. supply chains.

Build-to-suit leases, often with 10–15-year terms, have become increasingly common as tenants secure space in an undersupplied market. Developers are racing to deliver new logistics parks and production facilities, but challenges remain. Water scarcity in Monterrey and energy constraints in Baja California continue to weigh on growth. In response, developers are partnering with local governments to secure infrastructure improvements, while secondary markets such as Querétaro and Guanajuato are absorbing spillover demand.

Institutional capital is flowing aggressively into industrial funds and REITs, reflecting confidence in long-term fundamentals. Analysts expect demand to remain robust through at least 2026, with new corridors emerging in the Bajío region as tenants diversify locations.

Why it matters: Long-duration leases, tight vacancy, and structural demand from nearshoring are driving strong risk-adjusted returns for industrial portfolios.
Sources: CBRE Mexico; JLL LatAm; Reforma.