Mexicali, along with Tijuana and Tecate, make up the closest industrial markets to the state of California, in the United States.

When we analyze the proportions of these markets, we see that Mexicali maintains an industrial inventory that represents about 38% of that exhibited by Tijuana, which has traditionally been one of the most active borders with the United States, since it allows connection with the main industrial cities of the region. west coast like San Diego and Los Angeles.

These entities have been depleting their inventories in part due to strong pressure from US companies and Asian countries to relocate production processes that were previously handled from China or to expand part of operations based in the area, which have also been joined by new tenants and investors who make Mexico their new industrial destination.

Of interest: Solili Industrial Report August 2022, industrial demand grows 11% compared to 2022

Focusing on the increase in gross absorption in Tijuana, it can be seen that it has grown in annual terms by values close to 50% between 2022 and 2021 and 48% between 2021 and 2020, with comparative annual values from the second quarter of the year.

Now, Mexicali has still been subject to a higher rate of growth in demand compared to the size of its market, since it grew by more than one and a half times during the last year, analyzing the accumulated figures of 2002 compared to 2021 .

This strong impulse of the gross demand has been key so that the vacancies of these three entities reach historical minimums, reporting the lowest percentages at the national level where Tijuana, Mexicali and Tecate close with 0.46%, 0.97% and 0.34% in July 2022, respectively.

The greatest decrease in vacancy occurs in Tecate, which has practically no available spaces, very close to the situation shown by Tijuana and Mexicali, which have seen their vacancies decrease by 1.6 percentage points during the last two years.

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For the remainder of 2022, everything seems to indicate that the Mexicali market will maintain the same trend of minimum vacancies, as markets such as Tijuana and Tecate have experienced almost a year ago, with rates below 1%. Likewise, we project growing demands that will have to come from custom-made projects or from speculative spaces that start construction.

The effect that the proposed scenario will have will generate pressure on rental prices well above what we have seen in 2022, creating strong competition between tenants given the few available warehouse options.