Baja California has been the border area that has received the greatest pressure from industrial demand and the Tijuana and Mexicali markets are proof of this, since they make up 13% of industrial inventories nationwide.

Tijuana, whose inventory exceeds 8 million square meters, is 2.6 times larger than Mexicali, although Tijuana, being such an active border, has been more exposed to the onslaught of the space needs of the United States and the relocation processes of production and the expansions that have evaluated Mexico with the necessary potential for the installation of its plants.

This condition has made the industrial supply practically exhausted in Tijuana, which only has 58 thousand square meters that represent 0.7% vacancy, a figure that borders on the historical minimums of this entity.

Mexicali, however, has a higher proportion of its available inventory, which represents 1.7% of the total ships that make up its market. Despite these figures, vacancy volumes remain low and are below the national average.

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With options ranging from surfaces of 500 square meters to 19.6 thousand square meters, this border market has registered rental prices that have increased by 5% between January and June 2022, although the slope was even more pronounced in the last quarter of 2021 resulting in the annual increase of 19%.

The gross demand of these two Baja California markets reached almost 145 thousand square meters at the end of the second quarter of the year, representing 8% of the national total. In the specific case of Mexicali, net demand has continued to sustain a significant growth rate that almost doubles that registered in the second quarter of 2021.

In turn, construction progresses over 216,000 square meters, of which about a quarter have started throughout 2022.

Of what began construction this year, 36% corresponds to custom-made spaces, and the remaining 64% belongs to speculative projects that are activated in search of satisfying demand and thus capturing industrial rental opportunities. .

Availability in these new constructions reaches 60% where there are three options with available surfaces of 4.6, 9.2 and 19.6 thousand square meters. The remaining spaces are already committed and enter the inventory occupied once the construction is completed.

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This market is an example of how the decline in industrial vacancy can be prevented from continuing when speculative investments come into play and allow a greater balance of supply and demand that impacts a more reasoned price scenario.

Even in the face of the significant increase in costs and the strong inflationary pressure that the economy maintains, there are opportunities as long as the developers have the operational capacity to complete the projects they undertake on time and take the pulse of the market information to enter into the negotiation with the potential tenant.