Over the past five years, the Monterrey metropolitan area has undergone a profound transformation. Once regarded as a strong regional manufacturing center, Monterrey is now a globally recognized hub for nearshoring and advanced industrial development. During the last 5 years, shifts in trade policy, supply chain strategy, and foreign direct investment have fundamentally reshaped the industrial real estate landscape.
Between 2019 and 2024, Monterrey’s transformation has been notable. Once seen primarily as a regional logistics center, the city is now positioned as a key player in North American nearshoring. This shift was driven by its proximity to the U.S., an influx of foreign investment, and regulatory stability under the USMCA. With global companies seeking alternatives to Asia through nearshoring to Mexico, Monterrey’s industrial real estate market has become a magnet for advanced manufacturing and innovation.
Spanning roughly 60 kilometers from north to south, the Monterrey metropolitan area is one of Mexico’s most expansive and dynamic industrial markets. Its scale supports a diverse set of submarkets—each with unique advantages, from logistics access to specialized labor pools. Understanding these zones is key to identifying the right location strategy for your business or investment.
Between 2019 and 2024, Monterrey’s industrial market experienced compound annual growth of 18.9%, with total net absorption of nearly 94 million square feet across 659 leasing transactions.
In the years between 2019 and 2021, the absorption nearly doubled, which signaled the acceleration of nearshoring. The peak came in 2022 at 21.1M ft2 absorbed, driven by automotive and electronics manufacturers responding to global supply chain disruptions. For the next two years, the absorption rate held steady, but as of the first half of 2025, has seen a significant gap in recent trends.
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Source: Prodensa's Proprietary Real Estate Market Database, powered by AI. Register for early access here.
One of the most visible signs of Monterrey’s maturation is the increase in average deal size:
The inventory has also shifted toward institutional-grade standards, with:
96.5% of the market now consisting of Class A properties
New builds averaging 30+ ft clear heights and 178K sq ft per building
In 2019, logistics and supply chain operations dominated absorption. By 2024, the leading industries had evolved through nearshoring and investment:
Automotive: 24.8M sq ft (261% growth)
Electronics & Electrical: 13.2M sq ft (259% growth)
Construction Materials: 6.1M sq ft (414% growth)
Logistics demand softened slightly but remained relevant with 9.9M sq ft.
This diversification signals a strategic repositioning of Monterrey not just as a gateway for distribution, but as a manufacturing base for North American supply chains.
Several structural shifts fueled this transformation due to nearshoring:
The new trade agreement stabilized cross-border investment rules and incentivized regional manufacturing, especially for automotive and electronics.
Global lockdowns exposed the fragility of Asian supply chains. Monterrey, with its proximity to the U.S., became a natural alternative under “China+1” strategies.
From 2021 to 2023, Chinese and Korean firms—particularly in automotive and electronics—led record-breaking leasing activity in Monterrey’s parks, thanks in part to major Chinese infrastructure development projects.
Firms like Prologis, VYNMSA, and Finsa are driving speculative development at scale, indicating long-term confidence in the region’s fundamentals.
Total Inventory: 41.3M sq ft across 232 properties
Available Supply: 37.2M sq ft (90% vacancy, due to abundant new builds)
Under Construction: 11.4M sq ft
Top Submarkets: Apodaca, Escobedo, and Santa Catarina lead with over 28M sq ft combined
While vacancy appears high, this reflects proactive development rather than a slowdown in demand. For tenants, this abundance presents a strategic opportunity: access to ready-to-lease, modern facilities with competitive lease rates.
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Despite rising vacancy rates, Monterrey’s industrial market remains in a strong, sustainable growth cycle. Key competitive advantages include:
A growing, skilled labor pool
Reliable infrastructure and utilities
Continued inflows of foreign direct investment
Strategic positioning within the USMCA trade corridor
The risks to watch include global economic uncertainty, infrastructure bottlenecks, and increasing competition from other Mexican markets (like Querétaro or Tijuana). However, Monterrey’s scale, readiness, and ecosystem maturity give it a long-term edge.
Between 2019 and 2024, Monterrey evolved from a regional logistics base to a tier-one industrial powerhouse. Its combination of modern infrastructure, talent availability, and policy alignment with U.S. trade priorities positions it as a cornerstone of Mexico’s nearshoring strategy.
As manufacturers reevaluate their global footprints, Monterrey stands out as not just a low-cost alternative—but a strategic location for high-value production in the heart of North America.
Monterrey’s industrial boom is creating new opportunities for local stakeholders. If you're a private developer or a family with land, now is the time to explore how you can take part in the region’s growth. The Prodensa Real Estate team offers strategic guidance for maximizing your property’s potential within the nearshoring ecosystem. Reach out today for a personalized consultation on joining Monterrey’s transformation into a North American industrial powerhouse.
Ready to make informed decisions in Monterrey’s evolving industrial market? Sign up for early access to Prodensa’s proprietary AI platform—your gateway to Mexico’s most comprehensive industrial real estate database. Analyze trends, identify hotspots, and discover opportunities tailored to your land or investment strategy. The future of nearshoring starts with smarter data.