Tijuana has been one of the regions that has best positioned itself before the nearshoringwhich is the relocation of supply chains, which has triggered the demand for industrial spaces in this region and, in turn, has caused the prices of rent of these properties increase considerably.
According to an analysis by the real estate services firm Newmark, at the end of last year the average monthly price of rentper square meter (m2), of this type of space was located at 7.91 dollars, that is, a growth of 28.8% compared to the same period of 2021, when it registered an average value of 6.14 dollars per square meter.
“High demand in Tijuana continues to drive prices industrial developments, both the buildings and the prices. The industrial market in the city has seen aggressive growth in these years”, can be read in a Newmark analysis corresponding to the fourth quarter of 2022.
According to the firm, this is due to the low availability of industrial space in this region, which has a rate of 0.8 percent. Only in the last three months of 2022 a net absorption of 107,660 m2 was registered, slightly more than double compared to the previous quarter.
For Newmark, the low availability in Tijuana has caused the growth of this type of space to expand to other municipalities in the region, such as Rosarito.
“We see how (the market) expands its roots to the surrounding municipalities. Rosarito has seen an increase in interest in the industrial marketwith developers driving growth in this area,” the firm said.
For example, according to Newmark, the developer FINSA has begun construction of a new industrial park in Rosarito, which has also driven the rise in prices in this municipality.
“We will continue to see how the owners take advantage of a market in their favor and continue extending their roots in Vall Redondo, Blvd. 2000 and Rosarito,” he said.
Increase construction
The low availability in this market, one of the closest to the United States, has also led to the construction of new industrial spaces increase. According to the firm’s records, only in the last quarter of 2022, 346,545 m2 were registered under construction, that is, an increase of more than 53% compared to what was registered in the same period of 2021.
According to the data, the municipality of Tijuana covers 80% of the total m2 under construction in the region, followed by Rosarito, with a share of 11%, and Tecate, with 6 percent.
By 2023, Newmark foresees a stabilization in terms of prices, both for rent as departures, as well as new offers and industrial zones throughout the north of the country.
