Mexico’s industrial real estate sector is surging, propelled by the “nearshoring” trend of companies relocating supply chains closer to home.
A top executive of Fibra Monterrey (FMTY), one of Mexico’s major real estate investment trusts, reported that foreign manufacturers’ shift to Mexico – to avoid U.S.-China trade tensions and global supply risks – has become the primary engine of growth for warehouses and factories in Mexico. This trend, known as nearshoring, gained momentum after the U.S.-China trade war and the COVID-19 pandemic exposed vulnerabilities in far-flung supply lines.
As multinational companies seek to reduce dependence on Asia, many have been expanding or opening new facilities in Mexico. They are drawn by its proximity to the U.S., competitive labor, and trade agreements.
Javier Llaca, Operations Director for Fibra Monterrey, said that demand for industrial space saw a “notable boom” from 2021 to 2024. This led to record-high occupancy rates and rising rents in key manufacturing hubs. In regions like Monterrey, Ciudad Juárez, and Tijuana, industrial parks have filled up with logistics centers and assembly plants for everything from automobiles to appliances.
Fibra Monterrey itself expanded its property portfolio nearly tenfold over the past decade. It now holds almost 1.9 million square meters of gross leasable area. Llaca noted that their strategy focused on stabilized assets with occupancy above 96%, indicating the robust demand. Key industries driving this are “light manufacturing, export assembly, and logistics,” especially sectors like automotive, home appliances, electronics, and aerospace. These sectors are all thriving amid the nearshoring wave.
However, the first half of 2025 brought a slight cooling-off. “There was a deceleration due to uncertainty over tariff policies and international tensions,” Llaca explained. Indeed, the looming threat of U.S. tariffs (from the Trump administration) and geopolitical worries caused some investors to tap the brakes earlier this year. Industrial space absorption in January–June 2025 was down roughly 50% compared to the same period a year prior. But this dip appears temporary. Market conditions stabilized by mid-year, and optimism is returning for a stronger second half. Many pending projects are expected to resume once there’s clarity on U.S. trade policy. Fibra Monterrey, for instance, remains on track to meet its 2025 targets. The company has significant capital (around $400 million USD) ready to invest in new acquisitions or developments.
Analysts also point out that Mexico’s nearshoring appeal could even grow if U.S.-China decoupling continues. The Bajío region (central Mexico) and northern border states are particular hotspots for future growth. A recent Fitch Ratings outlook noted that while nearshoring boosts long-term prospects, some short-term challenges (interest rates, financing costs, and infrastructure bottlenecks) need managing. Nonetheless, the consensus is that Mexico’s industrial real estate boom is structural. As long as political stability and trade frameworks (like USMCA) hold, factories will keep landing in Mexico.
For everyday Mexicans, this trend means potential job creation in manufacturing and construction. Additionally, rising property values in industrial corridors could result. Local governments are racing to provide the infrastructure (roads, energy, water) to support these new plants. As of mid-2025, nearshoring has cemented itself as “a key engine” of Mexico’s economic growth. This is a rare positive story amid global economic uncertainty.
