Daniel Covarrubias

Interactive Op-Ed · February 2026

Building on Trade

Laredo's Billion-Dollar Industrial Moment

Daniel Covarrubias, Ph.D.

Director, Texas Center for Border Economic & Enterprise Development

Texas A&M International University

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2018
36M
SF
+25M SF in 8 years70% growth
2026
61M
SF
$1B+

invested

59

industrial parks

20,000

trucks daily

The Transformation

Between 2018 and 2026, Laredo's industrial footprint grew by nearly 70% — and the city's tax base grew with it.

2018

Industrial Footprint

36M SF
36M61M

City Tax Levy

$67.6M
$67.6M$137.4M
2020USMCA takes effect — reshoring incentives accelerate
2022Site selectors shift to border markets — lots projected to sell in 3 years move in 8 months
202311.3M SF under construction across the corridor
2024Tax acceleration begins — industrial construction hits the rolls
2025$137.4M — more than double the 2013 levy

Mile Marker 13

Mile Marker 13

The FM 1472 and I-35 corridor in North Laredo accounts for approximately 36% of the city's total industrial inventory across four major parks.

22M

square feet

36%

of total Laredo market

MEXICONuevo Laredo, TamaulipasFM 1472 / MINES ROADI-35 → San AntonioKillam IndustrialPinnacleMillenniumUnitecNLIPPremierSapphirePan AmericanIntl Trade CtrLa BarrancaWorld Trade Bridge (IV)Colombia-Solidarity Bridge~5 milesN
NLIP
Killam / Pinnacle
Other parks

Square area proportional to built SF

North Laredo Industrial Park

NLIP

One of the largest development platforms in the Mile Marker 13 corridor, with 1,386 acres and the corridor's most active construction pipeline.

9.1M SF

Total portfolio

1,386

Acres

5.6M SF

Under construction

Broader NW Corridor

Five additional parks along I-35 and FM 1472 complement the MM13 core zone.

Killam Industrial
6.0M SF72 bldgs
Pinnacle Industry Center
5.7M SF33 bldgs
Premier Industrial Park
1.1M SF6 bldgs
Millennium Industrial
0.8M SF23 bldgs
Sapphire Industrial
0.6M SF6 bldgs

Mile Marker 13 — Core Zone Composition

NLIP
Unitec
Hachar
Port Grande
NLIP: 9.1M SF (42%)Unitec: 4.4M SF (21%)Hachar: 4.4M SF (20%)Port Grande: 3.5M SF (16%)

National developers, family offices, and institutional joint ventures have committed over $1 billion across the corridor.

11.3M SF

under construction citywide

247%

pipeline increase since mid-2024

Where Laredo Sits in the Market Cycle

Post-construction vacancy is a normal phase in fast-growing industrial markets. Peer logistics markets across the Sun Belt are experiencing similar absorption cycles after record construction waves.

INLAND EMPIRE, CA
7.5%normalizing
LAREDO
11.5%absorbing
NATIONAL AVG
6.7%baseline

Laredo's current vacancy reflects a market absorbing new supply. The Inland Empire, which hit record-low vacancy during the pandemic boom, has since normalized to the 7–8% range as new supply entered the market — a pattern Laredo is now following. Much of the available inventory consists of 300,000–400,000+ SF buildings designed for institutional tenants.

Vacancy data from CoStar, Cushman & Wakefield, and CBRE market reports, Q3–Q4 2025.

0%

of all U.S.–Mexico trade flows through this corridor

0K

daily commercial truck crossings

#1

inland port by container-equivalent throughput

The First-Touch Advantage

Current Model

4

stops

~600 mi

distance

2–3 days

timeline

First-Touch Model

2

stops

Direct

distance

Same day

timeline

CURRENT MODELFIRST-TOUCH MODELMEXICOManufacturingLAREDOCross border only~250 miSAN ANTONIO / DALLASSort & redistributeTXMWSE4 stops · ~600 mi avg · 2–3 daysMEXICOManufacturingLAREDOCross, sort & distributeTXMWSE2 stops · direct from gateway

The infrastructure that private capital has built makes a different logistics model operationally possible.

What the market needs now

Workforce Development

Training programs aligned with institutional logistics operations, warehousing technology, and supply chain management.

Multimodal Connectivity

Rail, highway, and port-of-entry investments that support the volume and velocity of modern supply chains.

Permitting & Regulatory Environment

Streamlined processes that attract institutional tenants and enable rapid deployment of new logistics operations.

Santa Teresa, NM

Executing a coordinated public-private strategy pairing state highway and port-of-entry investment with a $2B mixed-use project. Its industrial footprint is a fraction of Laredo's, but its coordinated approach illustrates how aligning public infrastructure with private investment can accelerate development in emerging logistics markets.

The private sector built the foundation.
The opportunity now belongs to the entire community.

About the Author

Dr. Daniel Covarrubias is the Director of the Texas Center for Border Economic and Enterprise Development at the A.R. Sanchez, Jr. School of Business, Texas A&M International University. His research focuses on cross-border trade, logistics innovation, and North American economic integration.

Market data as of Q4 2025. Tax levy data from City of Laredo ACFR and adopted budget ordinances. Trade data from Port Laredo / U.S. Census Bureau. Park-level square footage from developer disclosures and public filings.

Daniel Covarrubias, Ph.D.

Daniel Covarrubias, Ph.D.

Director, Texas Center for Border Economic & Enterprise Development

Texas A&M International University

Researching the intersection of trade policy, exponential technologies, and cross-border economic integration from the Texas-Mexico border.