The Rise of Mexico’s Secondary Industrial Cities

Beyond Monterrey and Tijuana: where the next wave of nearshoring capital is headed

Introduction
The nearshoring boom’s first phase filled border-region warehouses. Its second phase is transforming central Mexico. Cities like Querétaro, León, and Aguascalientes now host logistics clusters serving both coasts and the U.S. Midwest.

Key Developments

• Industrial vacancy nationwide fell to 3.1 percent in Q3 2025.
• Bajío region absorbed 1.4 million m² of new space this year.
• Automotive and aerospace suppliers lead demand, followed by e-commerce and EV manufacturing.
• Infrastructure investments in rail and highways enhance multimodal connectivity.

Analysis & Context
Rising land and labor costs in Monterrey and Tijuana are redirecting capital southward. Developers report pre-leasing rates above 80 percent for projects still under construction. Secondary cities offer proximity to major industrial corridors while maintaining lower costs and higher ROI. Foreign investors increasingly prefer joint ventures with local operators for land acquisition and permit navigation.

Expert Voices

“The Bajío region is Mexico’s new industrial heartland,” says Ana García, CBRE Mexico. “Investors who missed the border wave are now finding double-digit returns here.”

Implications
Institutional funds are establishing regional vehicles focused on Tier 2 industrial assets, mirroring the U.S. logistics evolution of the 2000s. Expect continued cap rate compression and further public market interest through FIBRA structures.

Conclusion
The shift to secondary industrial hubs marks Mexico’s transition from a nearshoring trend to a long-term manufacturing re-industrialization.

Sources: CBRE Mexico, Colliers, Mexico Now, BorderNow.