November 2, 2022 | #DatozByDatoz
During the first half of 2022, Tijuana reported an industrial real estate inventory of 415,447 square feet. Industrial halls rented out at an average price of USD ¢50 to ¢70 per square feet, reveals Mr. Alejandro Mungaray Lagarda, Secretary of Economic Development of Tijuana.
“Value chains are on the road to recovery. The Pandemic meant a steep decline in production levels, particularly for certain production lines like microchips and associated products, which led to a shortage. Fortunately, production is finally reaching normal levels; microchips are essential for the automotive industry, household appliances, for everything really. Economic activity is on the rise again, which means more manufacturing and therefore increased demand for industrial parks,” says Mr. Mungaray Lagarda.
Tijuana has 78 industrial parks, it is a border town with a ceaseless demand for industrial spaces. “Any square foot available for industrial space is currently under construction. This trend may continue in the future, but I believe there will be more planning involved. It is essential to coordinate the manufacturing processes in Tijuana with what is going on in international markets, particularly in California. The situation today is that every single space is taken and any new activity has to wait for a space to be freed,” explains the official.
Mr. Mungaray Lagarda expresses that Tijuana is particularly attractive because of its location. It is easy for companies to arrange for materials and base products to be delivered from the US into Mexico swiftly and just in time.
On the other hand, Mr. Sergio Mireles, founder of Datoz, an intelligence platform for real estate, mentions that demand for industrial spaces in Northern Mexico is propelled mainly by nearshoring or the relocation of manufacturing companies, primarily from Asia, that choose to move to Mexico. “Other important factors are the unprecedented growth of ecommerce brought by the COVID-19 Pandemic and the need for logistic spaces that came with it, as well as the development of data centers that has resulted from broader digitalization. Finally, let’s not forget Mexican skilled labor is world-class.”
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