Monterrey Adjusts, but FIBRA Monterrey Invests with Confidence

Monterrey’s industrial market is undergoing a period of adjustment. After hitting historic lows—around 1%—at the end of 2023, the vacancy rate now stands at 4.9%. Even so, rents continue to rise: over the past year, they have increased by 8% in real terms¹, averaging more than seven dollars per square meter. That stability suggests resilient demand and an absorption level that remains strong enough to sustain returns, even in a more competitive environment.

One sign of that strength is FIBRA Monterrey, which recently closed the acquisition of the final two buildings in the “Batach” industrial portfolio—newly built and already leased—for $73.4 million. This completed the purchase of the full portfolio, comprising eight industrial buildings with a gross leasable area of 185,966 square meters and a combined value of $192.4 million, excluding taxes and associated costs.

It wasn’t the only bet on the region. While only one in ten existing companies expanded between Q2 2024 and Q2 2025, nearly three times as many firms entered the market as exited. Close to 50 companies—including American Woodmark, Bosch, Grupo Daye, Hengli, and Hoymiles—established operations, accounting for one-third of the occupied volume during that period, approximately 2.4 million square meters of industrial space.

Still, vacancies rose. For two main reasons: the exit of major tenants—which freed one square meter for every four leased—and a net absorption rate that, while positive, did not offset new deliveries. Nearly 2.4 million square meters were added to the inventory during the period, one-third of which was speculative. In contrast, effective absorption reached 1.8 million square meters.

Although the pace of absorption has slowed compared to the peaks of 2023 and 2024, it remains above the five-year historical average, at approximately 400,000 square meters per quarter. Rather than a sign of cooling, this suggests that the market is refining its momentum and entering a more selective, mature, and strategic phase.

The test will come in the second half of the year. With more than 650,000 square meters set for delivery, the market’s true absorption capacity will be put to the test once again. Yet, there are also signs of support: in Nuevo León, at least ten investments—either in progress or pending—have been announced, totaling more than $2.5 billion, primarily in commerce and manufacturing. Among them: Allied Machinery and Mercado Libre.

To learn more about the industrial real estate market in Monterrey and other regions across Mexico, visit SiiLA REsource or contact us at contacto@siila.com.mx.

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¹ Author’s calculation based on average nominal rents ($6.23 in Q2 2024 and $7.02 in Q2 2025), adjusted for annual inflation of 4.32% as of June 2025, according to INEGI. The calculation used the deflation formula: Real Price = Nominal Price / (1 + annual inflation).