REsource MX

240,000 sqm in Three Months: Querétaro Breaks Its Own Industrial Ceiling

As the country adjusts its pace, Querétaro is speeding up. While industrial activity cools in several parts of Mexico, this market has logged two consecutive records in new inventory and reached historic highs in absorption, positioning itself as a key destination for tech investment. Still, not everything is smooth sailing — its growth faces structural tensions that will test its sustainability.

Holger Nestler leads Volkswagen Mexico, one of the companies with the highest industrial absorption in Querétaro at the start of 2025. Photo: SiiLA.

By: SiiLA News

05/15/2025

Querétaro didn’t have a good quarter. It had one of the best in its history. Between January and March 2025, it added over 240,000 square meters of industrial space —the highest volume in a single quarter since SiiLA began tracking data. Just three months earlier, it had already set another record with more than 160,000. Two back-to-back records that speak not just of expansion, but of a node beginning to bend the country’s industrial map around itself.

This wasn’t a sudden boom. Between 2019 and 2020, Querétaro was already on an upward trajectory, with average deliveries of 84,000 square meters per quarter. The pandemic interrupted that rhythm —nearly halting activity in some quarters of 2021— but it didn’t knock it off course. Since the fourth quarter of that year, the market not only regained its pace: it accelerated. In the last 14 quarters, nearly 1.5 million square meters have been delivered, averaging over 100,000 per quarter, with a frequency of eight properties per period, compared to seven before the pandemic.

But the most revealing data point isn’t how much has been built —it’s how much has been occupied.

Since 2022, every wave of deliveries has coincided with strong absorption —gross and net— with notable peaks in 2022, 2023, and, most strikingly, at the start of 2025. That quarter not only broke an inventory record: it also posted 459,000 square meters in gross absorption and 329,000 in net absorption, meaning more space was occupied than delivered, even after accounting for tenant departures. And it wasn’t the only time. In nine of the past 25 quarters, net absorption matched or exceeded new inventory —a clear sign of a market with sustained demand and moderate turnover.

In Q1 2025, Querétaro absorbed more than it built: net absorption outpaced new inventory. Photo: SiiLA.

Much of that space has been filled by high-profile tenants. In the first quarter of this year, companies like Abbott, Bimbo, Eaton, JAC, Microsoft, and Volkswagen led absorption —reflecting a convergence of advanced manufacturing, technology, healthcare, and consumer goods in the region.

That diversity isn’t anecdotal. In Q1 2025, three sectors —automotive, packaging, and capital goods— accounted for 61% of absorbed space. This isn’t a passing trend: those same industries, along with other manufacturing branches, already form the structural base of the market. Today, manufacturing comprises 66% of occupied inventory, followed by consumer goods (11.5%) and transportation and logistics (5%).

The intensity of demand has also made its mark on prices. Between early 2022 and Q1 2025, industrial rents in Querétaro rose by over 40%. Today, average prices range between five and six dollars per square meter, depending on property class (B or A). But this isn’t speculative inflation —it’s a rise backed by real occupancy, effective absorption, and growing scarcity of premium space.

That same solidity is now showing up in the nature of investments.

Querétaro is attracting projects that shape the future of the industrial sector. One clear example is the $5 billion investment announced by Amazon Web Services in 2024 to develop a digital city in the state focused on cloud infrastructure, storage, and artificial intelligence. Microsoft has also expanded its regional footprint as part of a broader trend in which major tech players are betting on Querétaro —not out of logistical inertia but strategic logic. Connectivity, technical talent, and a concentration of advanced industries are forming an industrial ecosystem that doesn’t just produce —it thinks, processes, and scales.

That strategic shift is also reflected in investment decisions.

Between 2020 and 2024, foreign direct investment in Querétaro rose by 22.6%, from $861 million to $1.055 billion, according to the Mexican Economy Secretary. That volume is reinforced by another telling figure from Querétaro’s Secretariat for Sustainable Development: in 2024, 40% of investment projects were expansions —not new entries— suggesting companies aren’t just arriving: they’re committing to stay.

And it’s not just an industrial bet. Last year, Querétaro ranked third in Latin America —behind Santiago and São Paulo— for data center installations, reinforcing its emerging role as a hub for digital infrastructure in Mexico’s Bajío region.

Still, that transition isn’t guaranteed. Querétaro’s total volume remains below giants like Monterrey, Guadalajara, or Mexico City, and Guanajuato holds operational advantages along key manufacturing, logistics, and tech routes. That’s why the region’s real challenge isn’t growth —it’s sustaining that growth without letting success become a bottleneck. Infrastructure, land availability, and metropolitan integration are already showing signs of strain. And that’s the point: if Querétaro wants to keep bending the map, it will have to make sure the map bends with it.

To understand what’s coming —with data, context, and perspective— visit SiiLA REsource or contact us at contacto@siila.com.mx.

Latam

Mexico

Bajio

Industrial

Market Analytics

Development

ABOUT SiiLA

Founded in 2015, SiiLA is the industry leading REsource for comprehensive commercial real estate market insights, news and events across Latin America. The SiiLA suite of innovative products drive greater accuracy, efficiency, and strategic advantages for top players in the commercial real estate industry.