El Paso Commercial Real Estate Booms With Record Industrial Leasing Activity

El Paso’s commercial property market is firing on all cylinders, with a record-setting second quarter in industrial leasing, a major new warehouse development breaking ground, and retail vacancy remaining well below the national average. The activity underscores the Borderplex region’s growing appeal for both logistics and retail investment.

Industrial Market Hits New Heights

The city’s industrial market recorded a record 1.6 million square feet of net absorption in Q2 2026, according to market data from CBRE [1][8]. Vacancy rates declined by 100 basis points year-over-year, driven by strong leasing activity. The milestone reflects demand from manufacturers, logistics firms, and e-commerce operators seeking space near the U.S.-Mexico border.

STAG Industrial has acquired a fully leased 326,166-square-foot industrial portfolio spanning four buildings in the Borderplex area [5][10]. Meanwhile, Impulse 4.0 leased 125,646 square feet in what had been El Paso’s last remaining speculative industrial building, bringing it to 100% occupancy [4][5]. Both transactions signal that institutional capital sees long-term value in the region’s industrial base.

Green Point Property’s 636,000-SF Warehouse Project

Green Point Property Co. is developing a 636,000-square-foot warehouse project within a new 200-acre industrial park in El Paso [2]. Shell completion is expected in October 2026, with full delivery by the end of the year [2]. The project will add significant large-bay industrial capacity to a market that has seen speculative space absorbed rapidly.

The development is part of a broader wave of industrial construction reshaping the city’s skyline and logistics footprint. With vacancy tightening and leasing activity at historic highs, the new warehouse is likely to attract tenants in border-crossing supply chains and last-mile distribution.

Retail Market Stays Tight With New Projects Underway

El Paso’s retail vacancy rate remains tightly held at approximately 3.3%, significantly lower than the national average of 5.3% [4]. The resilience is driven by cross-border shoppers from Mexico and spending from Fort Bliss military families, creating a stable consumer base that has drawn developer interest, according to reports [4].

River Oaks Properties, El Paso’s largest commercial developer, sold nine shopping centers to MIMCO-managed investment partnerships in June 2025 while simultaneously launching new retail projects like The Market at Darrington, which features an Albertsons supermarket [3][6]. The transaction shows that even as institutional investors rotate capital, local developers are betting on the city’s retail fundamentals by adding grocery-anchored centers in growing corridors.

What the Momentum Means Going Forward

The combination of record industrial absorption, a large new warehouse coming online, and sub-4% retail vacancy paints a picture of a commercial property market in the middle of a sustained up-cycle. Cross-border trade, military-related demand, and population growth continue to underpin appetite for space across both sectors.

With the Green Point warehouse set for delivery by year-end and further industrial and retail projects in the pipeline, El Paso’s commercial real estate outlook remains bright. Investors and tenants alike will be watching to see whether development can keep pace with demand, and whether the market can continue to outperform its national benchmarks.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.