The main border cities that Solili monitors are Ciudad Juárez and Tijuana, followed by Mexicali and Reynosa. Together they added 28.6% of the gross demand nationwide during the first seven months of 2021.

Tijuana and Ciudad Juárez stand out with 378.2 and 349.6 thousand square meters, occupying the third and fourth position at the national level below Mexico City and Monterrey.

At the end of the month of July, the city of Tijuana registered the start of construction of 147.9 thousand square meters which, together with what had been developing, total 390 thousand square meters.

As a comparison above this amount, Mexico City is located with 495 thousand square meters and Monterrey leads nationwide with 532 thousand square meters.

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Currently in Tijuana, the construction of a speculative warehouse in the Vesta Park Alamar of 29 thousand 747 square meters on the Otay-Alamar submarket stands out. While the largest area corresponds to a custom-made project, or also called BTS, for 54 thousand 490 square meters located on the Pacific-Nordica submarket.

In Tijuana, construction is distributed almost proportionally between speculative and tailor-made projects, although of these last 3 of them they exceed 20 thousand square meters.

Regarding sizes, 56% of the footage corresponds to warehouses greater than 20 thousand square meters, 33% between 10,000 to 20 thousand square meters and the remaining 11% warehouses smaller than 10,000 square meters.

If we analyze the industrial market of Ciudad Juárez, only in Class A buildings 260 thousand square meters are built, of which three of them belong to the developer Intermex that advances with 42.4 thousand square meters, with sizes between 10 to 20 thousand meters squares, in speculative projects.

In Ciudad Juárez, BTS projects are ahead, where only three of these exceed 30 thousand square meters each, and like in Tijuana the market opens a wide range of options under construction from 5,000 to 39 thousand square meters.

Of interest: Industrial rental prices in Mexico City higher than pre-pandemic periods

Prologis, IGS, Vesta and American Industrie advance their construction proposals in this important border market characterized by an increasing rental price and stability in construction volume with a stable vacancy of around 3%.

Mexicali, for its part, has been closing the gap in its vacancy while Reynosa has once again raised its construction pace to the level it had at the beginning of the year. In the case of Mexicali, the largest Class A construction size corresponds to a BTS for 47 thousand square meters and the rest of the supply mostly between 9 thousand to 19 thousand square meters. Construction in this market is mainly concentrated in the Mexicali-San Luis Rio Colorado highway submarket.

Reynosa shows a less extensive construction offer than Mexicali and where the BTS almost double the speculative offer, with the largest construction in process being the one corresponding to the Fibra Nova BTS for just over 26 thousand square meters.

Border markets will continue to advance and will be favored by the economic spillover from the recent investment in infrastructure that the American government recently announced.