The imposition of U.S. tariffs on Mexico has created a climate of caution among foreign investors, pausing new capital injections into the industrial real estate sector. However, the core activity in industrial parks across the country remains largely intact, and experts believe that a rebound could occur by mid-2025.

Growth Plans Continue Despite Trade Uncertainty

According to Sergio Argüelles, CEO of real estate developer FINSA, 70% of companies operating in Mexican industrial parks are planning to increase production this year. Yet, due to Mexico trade uncertainty, many investment decisions have been delayed.

“We’re seeing a pause—not a cancellation—in investment plans. We expect a recovery in demand by Q2 2025,” Argüelles noted. Despite slower decision-making, existing operations in industrial real estate have not come to a halt.

Tariff Impact on Manufacturing and Global Supply Chains

The consulting firm SiiLA explains that the current wave of U.S. tariffs on Mexico is not merely a protectionist reaction. It’s a broader effort to reconfigure global supply chains in favor of U.S. manufacturing interests. But this strategy has limitations.

Chinese companies have increased their presence in Mexico’s industrial parks by 67% over the last three years, and key industries like automotive and tech still rely heavily on Mexican and Asian components. According to SiiLA, the tariff impact on manufacturing may backfire without a clear plan to replace imports.

“Without a strategic roadmap, U.S. tariffs on Mexico will hurt productivity and competitiveness rather than protect domestic jobs,” SiiLA stated.

Resilience in the Industrial Real Estate Sector

Despite these headwinds, the industrial real estate sector in Mexico is showing resilience. States like Nuevo León, Coahuila, and Chihuahua lead in industrial capacity and are seeing continued interest thanks to their infrastructure and strategic location.

Argüelles emphasized Mexico’s most valuable asset: its skilled labor force. “We have a major advantage in human talent, which supports advanced manufacturing and adds long-term value to the nearshoring and industrial growth trend.”

Strategic Priorities for Sustained Growth

Developers in the industrial real estate sector are focusing on several pillars to maintain competitiveness amid trade tensions:

• Improved energy supply infrastructure
• Streamlined permitting processes
• Modernized logistics: roads, ports, customs
• Education focused on advanced manufacturing

Additionally, strengthening local supply chains can reduce dependency on Asian imports, increase national content, and better position Mexico ahead of the upcoming T-MEC trade agreement review.

Long-Term Outlook: Nearshoring as a Structural Shift

While Mexico trade uncertainty remains a concern, the fundamentals behind nearshoring and industrial growth are strong. With the right policies and infrastructure, Mexico can turn current volatility into long-term transformation.

Argüelles concludes: “We must align investment, talent, and logistics with a long-term vision to ensure that nearshoring becomes more than a passing trend—it should become Mexico’s engine for industrial development.”