Saltillo’s Industrial Demand Surges, Led by Auto, Logistics

Saltillo’s industrial market boomed in 1Q25, driven by strong demand from the automotive and logistics sectors, reports CBRE México. The city’s strong performance indicators underscore Saltillo’s rising role in Mexico’s industrial landscape, says the company in its MarketView Región Saltillo, Coahuila – Industrial Sector report.

Net absorption in Saltillo reached 114,000m² during the 1Q25, a figure that remains well above pre-pandemic levels, representing a 464.6% increase compared to 1Q20 and 207.8% over 1Q19. This growth has been largely fueled by the delivery of pre-leased projects that were under construction, balancing out new vacancies and sustaining positive absorption.

The region’s strong absorption trend has kept vacancy rates at historic lows, closing 1Q25 at 2.0%, a rise from 0.7% in 1Q24. Most of this vacancy is concentrated in the Ramos Arizpe submarket, with 77% of available inventory found in second-generation buildings. The report anticipates a gradual uptick in availability as 117,000m² of space becomes ready in the coming months and 80,000m² enters the pipeline for new construction starts.

Saltillo added 174,000m² of new industrial space during the quarter, bringing the city’s total inventory to over 5.1 million m² and positioning it among Mexico’s largest industrial markets. Only 11% of the new supply entered the vacant inventory, highlighting continued strong pre-leasing activity.

Construction activity remains robust with 68,000m² in new construction starts, supporting a pipeline that now surpasses 248,000m². Speculative development is re-emerging after a period dominated by build-to-suit and pre-leased projects, signaling developer confidence in sustained demand.

Saltillo’s industrial demand was once again led by the automotive and logistics sectors, which together accounted for gross absorption of 61,000m² — exceeding pre-pandemic benchmarks and registering a 103.2% increase over 1Q19 and 357.2% over 1Q20. Ramos Arizpe dominated with 72% of the quarterly demand, followed by Saltillo (24%) and Arteaga (4%).

The automotive sector led the way with over 42,000m² leased, representing 71% of total activity. The logistics and transportation segment accounted for the remaining share.

Foreign investment continues to play a key role in Saltillo’s industrial momentum. US-based companies accounted for 25% of total gross absorption — more than 14,000m² — reclaiming the lead in international interest, reports CBRE México. China and Spain followed closely, each contributing 23% of demand. Mexican firms represented 17% of the activity.

The average lease transaction size remained stable at 10,000m², with 22% of quarterly demand focused on built-to-suit projects, underlining a trend toward customized space solutions.

According to the Mexican Social Security Institute (IMSS), Coahuila added 3,802 formal jobs as of February 2025, 82% of which were generated in Saltillo’s metropolitan area.