The imposition of tariffs by Donald Trump's administration has sparked caution among investors, leading to a slowdown in industrial demand across the country, which fell by 45% during April 2025.

Related: Solili Industrial Report April 2025: Vacancy Rates See a 50% Annual Increase Nationwide

In the specific case of the eight industrial markets that make up northern Mexico, leasing activity totaled 137,000 square meters—half the amount reported in April 2024.

As a result of the slowdown in leasing, industrial developers in northern Mexico have adopted a more cautious approach to launching new projects. In April, these northern markets began construction on 200,000 square meters, marking a 27% year-over-year decline.

Currently, northern Mexico's industrial markets are characterized by ongoing expansion, due to their strategic importance for investment. The region accounts for 60% of all industrial construction projects underway nationwide.

In April, construction starts in northern Mexico were concentrated mainly in Monterrey, which accounted for 60% of the total, followed by Tijuana with 21%. In contrast, no new construction activity was reported in Tecate, Reynosa, Chihuahua, or Ciudad Juárez.

Read also: 48,000 m² of Industrial Construction Begin in the Guanajuato Market

Industrial supply in northern Mexico is on the rise, driven by lower demand and the addition of vacant spaces to existing inventory. This has resulted in a two-percentage-point annual increase in the region’s vacancy rate. In this context, developers are choosing to hold off on new builds until existing space is absorbed.