Over the past year, Mexico’s industrial real estate activity has entered an adjustment stage after the record levels of gross absorption (or real estate transactions) seen during the pandemic and the years that followed. This has resulted in a significant increase in availability in the Northwest region in particular.
As of the end of 3Q 2025, the Northwest region recorded 31 million square feet (ft²) of industrial space availability, 42% of which was in Tijuana. The region’s availability rate reached 11.02%, while the border market registered 12.58%, according to Datoz data.
What has driven the rise in availability?
Tijuana’s industrial market has shown an increase in availability due to the entry of new speculative developments and some natural vacancy movements, explained Carlos Ríos, Industrial Real Estate Analyst at Datoz.
Historically, Tijuana had kept an average availability rate of around 5%, and at one point it was as low as 2.5%. However, starting in 1Q 2024, the availability rate of industrial buildings in this market began to grow rapidly, reaching 12.58% in 3Q 2025, according to data from Datoz Analytics 2.0.
With this rate, the border market recorded availability equivalent to 12.9 million ft². Of that amount, 7.8% corresponds to the start of construction, while 10% comes from vacancies recorded during 3Q 2025. In other words, during this quarter, these indicators increased Tijuana’s availability by nearly 20%.
Tijuana is experiencing an industrial market adjustment phase
Ríos explained that the increase in availability of industrial buildings in Tijuana does not necessarily reflect a market slowdown, but rather an adjustment and renewal phase of the inventory, in which developers are anticipating future demand.
Meanwhile, the border market continues to consolidate itself as one of the country’s most active industrial hubs, with supply seeking to respond to the requirements of nearshoring-driven and advanced manufacturing companies.
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