2024 marked a year of stabilization in Mexico’s industrial real estate market fundamentals after a period of atypical growth driven by nearshoring and e-commerce. This was reflected in the gross absorption of industrial spaces, as levels declined nationwide. However, the northern markets (Northeast and Northwest regions) experienced lower demand for industrial spaces compared to other regions.
National gross absorption totaled 56.6 million square feet, with only 26.3 million square feet coming from transactions in northern markets, led by Monterrey and Tijuana.
Monterrey Leads Activity in the Northeast
Monterrey’s industrial real estate market solidified its position as the most active in the region, accounting for 78% of the activity in the Northeast by accumulating a gross absorption of 11.9 million square feet, followed by Saltillo with 15%.
Notable transactions include two leases by Mercado Libre, totaling 1.3 million square feet, located in Areya Escobedo Industrial Park and Vesta Park Apodaca. This e-commerce giant also drove activity in other markets such as Mexico City and Guadalajara.
Tijuana and Ciudad Juárez Drive the Northwest Region
Tijuana led the annual gross absorption in the Northwest region with 41%, totaling 4.7 million square feet, followed by Ciudad Juárez with 23%, or 2.6 million square feet.
This market continues to strengthen its position as an electronics hub, with its most significant transactions linked to companies such as Alliance Air, Tamura Corporation, and Windings. In the case of Ciudad Juárez, demand for industrial space was driven by electronics companies, shelter firms, and storage operations.
It is worth noting that Chihuahua stood out this quarter for its activity in built-to-suit buildings and the completion of major projects with Fibra Nova.
Challenges for 2025
The northern markets have a solid foundation and several projects in the pipeline. However, the sector must prepare to face challenges to maintain its momentum:
- Energy Infrastructure: Improving energy distribution, especially in border markets like Tijuana, will be crucial to meeting the sector’s demand.
- Tariffs and Foreign Trade: U.S. trade policies, particularly in industries such as automotive, could impact industrial activity in markets like Monterrey.
