Amid evolving trade dynamics, CBRE experts reveal how nearshoring, supply chain reinvention and revitalized twin-plant models are reshaping industrial markets on both sides of the U.S.-Mexico border. Notably, demand for logistics space and construction activity is booming along the I-35 Corridor.

Key takeaways on U.S.-Mexico Border Markets:

· Port Laredo Surpasses Traditional Gateways: Currently the top U.S. import hub by value, Laredo’s rise reflects a structural shift in trade flows. Demand for modern logistics facilities near the U.S.’s southern border continues to grow.

· Kansas City Leads for Absorption and Connectivity: With 28% leasing growth and strategically situated along I-35 with access to a newly unified Canada–Mexico rail system, Kansas City is emerging as a central node for North–South supply chains—ideal for occupiers seeking scalable inland distribution.

· 14M+ SF Under Construction in El Paso and Laredo. These border markets are seeing major development of automation-ready cold storage and FTZ-enabled facilities. This signals long-term confidence and presents opportunities for early investment in next-gen industrial assets.

· Twin-Plant Models Resurge: The return of dual facilities operating on both sides of the border is fueling demand for more sophisticated manufacturing and distribution space t. Occupiers should evaluate cross-border strategies to optimize labor and logistics.

· Keen Competition to Secure Labor Cost Advantages: Border markets offer up to 70% labor cost savings vs. most U.S. cities, and have a skilled workforce. However, occupiers must act strategically to secure talent in a highly competitive market.

Crossroads: Industrial & Logistics Opportunities in U.S.-Mexico Border Markets

The Weekly Take from CBRE