Why Mexico Remains a Top Destination for Industrial Real Estate in 2025
Executive Summary
- Nearshoring fuels demand: U.S. imports from Mexico grew 5% in 2023, hitting $475 billion.
- Infrastructure investments surge: $2.7B upgrade of Port of Manzanillo aims for 10M container capacity.
- Global manufacturers expand: Firms like Stellantis, Kia, and BYD increase production capacity.
- Trade routes boom: Cross-border shipments jumped 37% in 2023.
- Challenges remain: Permitting delays and space scarcity exist, but Mexico’s advantages persist.
Nearshoring Fuels Investment in Mexico
Despite trade uncertainties, foreign investment in Mexico’s industrial sector is growing. Tariffs are seen as short-term issues, while long-term strategies focus on efficiency and proximity to the U.S. The $31B merger forming Canadian Pacific Kansas City (CPKC) created a 20,000-mile rail network, strengthening Mexico’s position in North American supply chains. U.S. imports from Mexico increased 5% year-over-year in 2023 (Reuters), confirming this trend.
Infrastructure Expansion Strengthens Supply Chains
Mexico is doubling down on logistics. A $2.7B modernization project at the Port of Manzanillo will increase container capacity to 10 million by 2030. Freight firms like Schneider and RXO report a 37% increase in cross-border trade. Major logistics players—Kuehne + Nagel and C.H. Robinson—are expanding warehouse capacity in border hubs such as Laredo and El Paso.
Foreign Companies Continue Expanding in Mexico
Skilled labor, cost efficiency, and regional proximity drive industrial growth.
- Stellantis produces Ram 1500 trucks in Saltillo.
- Kia is expanding its Pesquería plant for EV production.
- BYD and ZC Rubber see Mexico as a North American gateway.
Industrial developers like Fibra Uno and Vesta are building modern manufacturing and logistics spaces nationwide.
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Opportunities and Challenges in the Mexican Market
Mexico’s appeal is undeniable: strategic location, labor advantages, and improving infrastructure. Yet challenges remain:
- Permitting complexity: Slows project timelines.
- Limited space: High demand in key hubs like Monterrey and Querétaro.
- Supply chain integration: Needs careful planning to avoid disruption.
🚪 Contact Select Mexico for expert site selection and lease advisory in high-demand areas.
How Select Mexico Can Support Your Expansion
With over 30 years of experience, Select Mexico Real Estate Solutions helps businesses:
- Find ideal locations
- Negotiate leases
- Market Intelligence
We navigate regulation, logistics, and local nuances so you can focus on growth.
📞 Contact us today to learn how we can help you expand in Mexico
FAQ
What are the best cities to invest in industrial properties in Mexico?
Monterrey, Saltillo, Querétaro, and Apodaca stand out due to their infrastructure and strategic location.
What challenges do foreign companies face when expanding into Mexico?
Slow permitting processes, limited availability of space in high-demand regions, and supply chain integration hurdles.
How much does it cost to lease an industrial warehouse in Monterrey in 2025?
Prices vary depending on location and size but remain competitive compared to the U.S.
Which industrial sectors are growing the most in Mexico this year?
Automotive, home appliances, electronics, and advanced manufacturing are seeing strong growth.
Why invest in industrial parks near the U.S. border?
They offer faster logistical access to the U.S. and may provide fiscal incentives in certain regions.
Why Tariffs Won’t Slow Down Investment in Mexico’s Logistics and Industrial Sectors
Despite uncertainty surrounding U.S.-Mexico trade relations, investment in Mexico’s logistics and industrial sectors remains strong. Companies continue expanding their operations, viewing potential tariffs as temporary challenges rather than long-term deterrents. The $31 billion merger that created Canadian Pacific Kansas City (CPKC) has significantly bolstered North American trade routes, integrating a 20,000-mile network that connects key manufacturing hubs and ports.
Logistics giants such as Kuehne + Nagel and C.H. Robinson are strengthening cross-border infrastructure, expanding warehouse capacity in strategic locations like Laredo and El Paso.
According to Reuters, U.S. imports from Mexico hit $475 billion in 2023, marking a 5% year-over-year increase. This steady growth, fueled by nearshoring trends, underscores Mexico’s vital role in global supply chains. Moreover, Forbes highlights that Mexico’s cost-efficient labor market continues to attract manufacturers seeking a competitive edge, reinforcing the country’s long-term industrial appeal.
The resilience of Mexico’s industrial sector is evident in the continuous expansion of manufacturing facilities by leading global companies. Stellantis, General Motors, and Kia are ramping up production capacity, with Stellantis now manufacturing Ram 1500 pickup trucks in Saltillo. Investment Monitor reports that Kia is making substantial investments in its Pesquería plant, focusing on electric vehicle production to meet rising consumer demand. Meanwhile, Chinese firms such as BYD and ZC Rubber are evaluating Mexico as a key manufacturing hub, drawn by its skilled workforce and advantageous location near the U.S. According to the Financial Times, BYD’s investment in Mexico aligns with its broader North American expansion strategy. In parallel, the Mexican government has pledged $2.7 billion to upgrade the Port of Manzanillo, aiming to double its capacity to 10 million containers annually by 2030.
These factors illustrate Mexico’s ability to sustain industrial growth despite external pressures.
Infrastructure and logistics investments are accelerating as companies optimize supply chains for efficiency and cost savings. Industrial real estate leaders like Prologis continue acquiring and developing properties in Mexico, anticipating sustained long-term demand. “Despite shifts in trade policy, Mexico remains a cornerstone of our North American strategy,” a Prologis executive shared with the Wall Street Journal. This sentiment is echoed by freight operators expanding their cross-border services, such as Schneider’s newly established shipping routes linking Mexico with the southeastern United States. RXO, a top freight broker, reported a 37% increase in cross-border shipments in 2023, further cementing Mexico’s role as a critical manufacturing and distribution hub. Even amid potential tariff increases, Mexico’s labor cost advantages and logistical efficiencies make it an attractive destination for corporate expansion.
Additionally, the rapid development of industrial parks by firms like Fibra Uno and Vesta demonstrates how real estate companies are responding to rising demand for high-quality manufacturing and logistics facilities.
Looking ahead, Mexico’s industrial sector will continue attracting foreign investment, driven by its strategic location, competitive operating costs, and expanding infrastructure. However, companies seeking to establish or expand operations in Mexico must navigate complex regulatory requirements, secure optimal real estate, and ensure seamless supply chain integration.
At Select Mexico Real Estate Solutions, we specialize in overcoming these challenges, providing expert site selection services, in-depth market intelligence, and operational consulting to help businesses thrive. With over 30 years of experience, we guide clients through location strategy, lease negotiations, and logistics optimization, ensuring a successful expansion into Mexico’s dynamic industrial landscape. Contact us today to discover how we can help you capitalize on Mexico’s booming industrial sector and confidently navigate its opportunities and challenges.