Key Takeaways
- El Paso’s industrial market has grown 38% in 18 months, driven by trade and military logistics.
- Demand for industrial space near border crossings continues to rise, with vacancy rates near record lows.
- Investors are increasingly targeting new industrial developments to benefit from the city’s growth trajectory.
El Paso, TX – El Paso’s industrial market is expanding fast, thanks to booming border trade and military-driven logistics growth.
Can this Texas border city become a regional powerhouse for industrial investment?
In this article:
- Why El Paso’s industrial sector is growing at record pace.
- The role of Fort Bliss and international trade in driving demand.
- What real estate investors should watch in this emerging market.
Let’s explore how El Paso’s location and infrastructure are shaping a real estate opportunity worth tracking.
A Border Boom With National Impact
El Paso is undergoing a transformation.
Once known primarily as a military town and border city, it is now one of the fastest-growing industrial hubs in the Southwest.
According to a new report by the Texas Border Real Estate Alliance, industrial development in El Paso has surged 38% over the past 18 months.
The key drivers:
- Increased U.S.-Mexico trade, fueled by post-pandemic supply chain shifts.
- Expansion of Fort Bliss logistics operations, supporting military readiness and defense contracts.
- Improved cross-border infrastructure, including new commercial vehicle lanes and rail upgrades.
El Paso’s strategic location on the U.S.-Mexico border and direct access to I-10 have made it a logistical sweet spot for shipping, warehousing, and military supply chains.
Investors Take Notice
For real estate investors, El Paso presents several strong plays:
- New industrial parks are leasing up quickly, with pre-leased rates as high as 75% before completion.
- Vacancy rates are dropping, currently hovering near 4.1% across the metro area.
- Rents are rising steadily, driven by national logistics operators and regional manufacturers.
Developers are planning more than 5 million square feet of additional industrial space over the next two years, much of it located near the Zaragoza and Santa Teresa Ports of Entry.
Assessment
El Paso is stepping into the industrial spotlight, powered by border trade, military logistics, and robust infrastructure upgrades.
While the market has historically flown under the radar, it’s now catching the attention of national investors looking for yield, growth, and geographic diversification.
With stable demand drivers and a favorable location, El Paso is becoming a prime candidate for long-term industrial investment in the Southwest.
