At the close of May 2025, the industrial real estate sector in Mexico continues to face a challenging international environment, marked by trade tensions, tariff adjustments, and reconfigurations in global supply chains.

Despite the pressure generated by protectionist policies promoted by the United States, demand for industrial space in Mexico remains resilient, supported by the country's strategic position within the global supply chain and the interest of international companies in relocating their production closer to key consumer markets.

In this context, cumulative industrial demand in Mexico during the period from January to April 2025 reached 1.9 million square meters, representing 76% of the gross demand recorded during the same period in 2024.

In the months of April-May 2025, industrial leasing activity nationwide totaled 644,000 square meters, representing a 30% decrease compared to the same period in 2024.

The largest volume of transactions was concentrated in the country's main cities, with Mexico City accounting for 21% of total leases, followed by Monterrey with 17% and Guadalajara with 13% of industrial leases between April and May 2025.

During the same period, vacated industrial space in the country reached 297,000 square meters, a figure that remained virtually unchanged compared to the same two-month period in 2024. Tijuana was the industrial market with the largest move outs, accounting for 23% of the national total and being the only market in the country where vacated space exceeded leases. Guadalajara and Monterrey followed, with 22% and 18% of total move out activity, respectively.

At the end of April 2025, industrial property construction activity in Mexico exceeded 5.2 million square meters under development. Between April and May, new construction starts totaled 314,000 square meters, representing a 30% decrease compared to the same two-month period in 2024.

The most dynamic markets in terms of construction starts continue to be Monterrey, which accounts for 27% of new projects, followed by Mexico City with 21% and Guadalajara with 13% of the total. The rest of the country's markets reported more moderate growth in the launch of new developments.

During May 2025, 511,000 square meters of deliveries were added to the national industrial inventory, which now totals 107 million square meters. The Monterrey market stood out in particular, with the completion of 184,000 square meters, while Tijuana also reported a significant volume of deliveries, with more than 85,000 square meters.

The Mexican industrial market remains a key destination for nearshoring, thanks to its geographic proximity to the United States, its solid logistics infrastructure, and trade agreements, such as the USMCA, that directly link it to major North American markets. This advantage has allowed the country to attract investment and encourage the relocation of industrial operations, especially in sectors such as advanced manufacturing, automotive, and technology.

However, in recent months, there has been a contraction in both the demand for industrial space and the start of new construction. This slowdown is due to a global macroeconomic environment of greater volatility in international trade flows due to new US tariff policies. As a result, investors have adopted a more conservative stance, evaluating their expansion possibilities in the face of an economic outlook that demands more strategic planning.