More industrial space sits empty in Reynosa as vacancy hits 10-year high, but developers keep building

REYNOSA, Tamaulipas — Industrial vacancy in Reynosa has climbed above 10% for the first time in nearly a decade, signaling a cooling industrial market as manufacturers delay investment decisions amid tariff uncertainty and the ongoing review of the U.S.-Mexico-Canada Agreement.

Data from industrial market intelligence firm DATOZ show Reynosa recorded a 10.41% industrial vacancy rate during the first quarter of 2026 — the highest level the firm has reported since 2016.

The city now has approximately 4.24 million square feet of available industrial space, equivalent to roughly one out of every 10 industrial properties in the market.

“The previous high was in 2024, when vacancy reached 7.97%. Today it stands at 10.41%,” DATOZ industrial market analyst Ramiro Emilio Ibarra Cueva said. 

Ibarra said the increase is not the result of a wave of speculative construction. Instead, much of the additional availability stems from industrial move-outs, corporate adjustments and delayed expansion decisions tied to a more uncertain trade environment.

The increase comes as some manufacturers continue expanding while others postpone projects or vacate facilities as they wait for greater clarity on U.S. trade policy, tariffs and the future of the USMCA trade agreement.

Companies still taking space

Even with more empty industrial buildings on the market, companies are still expanding and moving into the region. 

Over the past year, manufacturers leased or occupied more than 553,000 square feet of industrial space in Reynosa and Matamoros, a 59% increase from the year before. However, all of the activity recorded during the first three months of 2026 occurred in Reynosa.

The data suggest that while nearshoring activity has slowed, demand has not disappeared.

Electronics manufacturing continues to drive much of the activity that remains in the market. DATOZ cited expansions by NIDEC, growth at Lincz Cables and operations linked to Terrepower among recent examples of continued investment.

The Lincz project alone accounted for approximately 193,000 square feet of leased industrial space at El Puente Industrial Park in Reynosa during 2025.

“Electronics manufacturing is a sector that continues growing significantly,” Ibarra said.

DATOZ also identified recent activity involving companies from China, Japan and South Korea, countries that continue participating in manufacturing projects and expansions across the region.

Developers bet on recovery

Developers interviewed for this story described the current environment as a pause in decision-making rather than a fundamental shift in the region’s competitiveness.

“We are confident that companies will continue coming here to invest,” said Martín Anzaldúa, CEO of Grupo Río San Juan. “We need to be ready to receive them when that happens.”

That confidence is reflected in the company’s plans to expand west of Villa Florida Industrial Park, one of Reynosa’s most established industrial developments.

Grupo Río San Juan plans to develop an additional 400 hectares, or about 988 acres, of industrial land after the existing park reached occupancy levels near full capacity. The new development is expected to be similar in size to the current complex, and construction could begin as early as this year, according to the company.

Matamoros positions for future growth

While Reynosa’s vacancy rate has climbed, neighboring Matamoros remains considerably tighter, with a vacancy rate of 3.19% and industrial occupancy of 96.81%, according to DATOZ.

Matamoros is also positioning itself for future growth. One example is the reactivation of Ramírez Industrial Park, a development encompassing approximately 2.9 million square feet that is seeking to reposition itself within the border industrial market.

The project offers more than 16,000 KVA of electrical capacity and access to water for industrial processes, two factors that have become increasingly important for manufacturers evaluating new locations.

According to Miguel de la Garza, the project’s industrial broker, the park has already attracted activity through the installation of Quality Motors and is currently engaged in evaluation processes with companies from Canada, the United States, India and Mexico.

“This creates momentum. It is the beginning of attracting more companies,” De la Garza said.

However, he acknowledged that trade uncertainty continues to influence the pace of corporate decision-making.

“If it were not for the tariff issue, several of these companies would already be operating here,” he said.

Trade certainty remains the key question

The slowdown has also shifted leverage in lease negotiations.

“Tenants now hold the leverage,” Ibarra said.

For developers, the current increase in vacancy represents a temporary challenge rather than a long-term concern.

“At the end, the trade agreement will be the most important factor,” Ibarra said. “I do not want to diminish the importance of security, infrastructure or capabilities, but the agreement is what will provide certainty for future investments.”

The message from developers is clear: nearshoring demand has cooled, but they remain confident it will return once companies gain greater certainty about tariffs and the future of North American trade.