Mexico’s Industrial Real Estate Q3-2025: Steady Nearshoring Momentum

Mexico’s industrial real estate sector continues to attract global attention as nearshoring reshapes North American supply chains. Backed by strong demand, consistent absorption rates, and ongoing construction, the country’s top markets are proving resilient and strategically positioned for continued growth through 2025.

Mexico’s Industrial Market Remains Strong Amid Nearshoring Demand

Mexico continues to solidify its position as a leader in manufacturing in Mexico and nearshoring to North America, with stable industrial demand across the country’s top regions — Monterrey, Tijuana, Ciudad Juárez, Querétaro, and Mexico City (CDMX).
Through Q3 2025, data shows healthy absorption, moderate rent growth, and continued construction activity — reinforcing Mexico’s appeal for companies seeking cost-competitive production and cross-border logistics advantages.

Monterrey: Mexico’s Manufacturing Powerhouse

As the country’s largest industrial market, Monterrey  boasts 203 million ft² of inventory and an 11.39 % availability rate. Average rents remain competitive at USD 0.67 / ft² / month, helping global manufacturers expand efficiently within northern Mexico’s manufacturing corridor.
While construction starts dipped slightly (–2 %), gross absorption rose 28 %, showing sustained momentum among nearshore investors and companies setting up manufacturing operations in Mexico.

Tijuana: Nearshore Gateway for U.S. and Asian Manufacturers

Tijuana continues to strengthen its role as a binational production hub. With 102 million ft² of inventory and a 12.58 % availability rate, the region saw 14 % growth in construction starts and 10 % higher absorption versus the previous quarter.
Average asking rent stands at USD 0.80 / ft² / month, reflecting strong demand from U.S. and Asian companies manufacturing in Mexico and leveraging Section 321 for cross-border e-commerce fulfillment

Mexico City (CDMX): Central Hub for Distribution and E-Commerce

With 192 million ft² of inventory and an availability rate of 5.29 %, CDMX maintains the tightest industrial market in the nation. Asking rents climbed 2 % to USD 0.95 / ft² / month, the highest among Mexico’s major cities.
Despite a –37 % slowdown in new construction, CDMX remains essential for companies seeking logistics, warehousing, and last-mile distribution solutions for the domestic market

Ciudad Juárez: Growing Automotive and Electronics Manufacturing Base

Ciudad Juárez continues its expansion as a vital border manufacturing hub with 90 million ft² of inventory, 11.07 % availability, and USD 0.66 / ft² / month average rent.
The market experienced a 63 % surge in gross absorption and 3 % increase in construction, driven by automotive, medical device, and electronics manufacturers seeking immediate proximity to U.S. markets.

Querétaro: High-Tech and Aerospace Momentum

In central Mexico, Querétaro remains a magnet for aerospace, automotive, and high-tech manufacturing. The region reports 81 million ft² of inventory, 7.48 % availability, and USD 0.55 / ft² / month rents.
Although construction dipped 3 %, gross absorption jumped 74 %, signaling robust investor confidence in Querétaro’s role as a strategic location for advanced manufacturing in Mexico

Comparative Snapshot

About Co-Production International (CPI)

With over 44 years of experience, Co-Production International (CPI) helps foreign manufacturers establish and operate facilities in Mexico through its comprehensive Shelter Program.
CPI manages administrative, legal, and compliance functions so clients can focus entirely on production.

Discover how CPI can support your site selection, cost analysis, and manufacturing expansion in Mexico, schedule a free consultation.