Industrial Demand in the Rio Grande Valley Remains Strong and Diversified: CBRE

The Rio Grande Valley is experiencing one of its most dynamic periods in industrial activity, fueled by rising demand for space, a diversified base of industries, and an active wave of new developments across Hidalgo and Cameron counties.

Carlos Telles, First Vice President at CBRE in McAllen, noted that nearly all submarkets in the region are demonstrating solid performance, driven by demand from sectors such as manufacturing, food processing, automotive, and appliances. “When you have strong diversification among industries, it gives you a very good expectation of where the market is headed,” he said.

He emphasized that multiple developers are advancing new industrial projects, including build-to-suit facilities and speculative buildings—an essential mix that allows the market to meet both specialized requirements and immediate demand. Developments such as Capote Industrial Park and Majestic’s project, where CBRE is set to deliver one million square feet, illustrate the scale of expansion. Spec buildings “do not stay on the market for long,” confirming the region’s strong absorption rates.

The most in-demand sizes range from 20,000 to 200,000 square feet, giving the market the flexibility to attract small, medium, and large companies.

Industrial growth is concentrated in areas near strategic infrastructure: the Anzaldúas International Bridge, the Pharr International Bridge, key interstate-adjacent corridors, and the Port of Brownsville, with additional momentum from SpaceX and LNG projects. “Each submarket has its advantage. Different factors are driving interest,” Telles added.

Some companies also seek locations near the interstate corridor to support direct-to-consumer distribution strategies.

Telles highlighted the growing interest from Mexican investors, noting that CBRE offers comprehensive advisory services tailored to them. “We provide an objective perspective of the market—land pricing, building quality, valuations, and comparables. We identify all opportunities that match what users need,” he explained.

This market intelligence enables investors to understand real property values, uncover opportunities, and make informed decisions.

CBRE South Texas currently maintains available inventory from Mission to Brownsville and is positioned to represent users throughout the Rio Grande Valley. CBRE is a global leader in commercial real estate services and investments, committed to empowering clients through data-driven insights, technology, and deep market expertise.