At the end of the first quarter of 2022, Tecate hardly had any rental options to meet the demand, which in 1Q 2022 alone exceeded 10,000 square meters.

This market registered a decrease of 5 percentage points within a year to close in April 2022 with 0.56% vacancy.

During 2021, the entity managed to accumulate an annual demand of almost 43 thousand square meters, after registering a similar figure during 2020.

Prior to the pandemic, at the end of 2019, this market moved with an annual demand rate of 16 thousand square meters, so we can infer that the pandemic tripled demand.

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With a distance of 47 kilometers by highway, it was to be expected that part of the effects of the strong industrial demand that fell on Tijuana would permeate in part towards this other nearby market and where there was availability.

If at this time a tenant requires a Class A property in the entity of less than 5 thousand square meters, only one option would meet this criteria.

Now if we analyze the issue of construction there is only one speculative building of 29 thousand square meters that advances on the Tecate-Tijuana corridor.

In turn, the growth in demand that reduced vacancy to historical minimum levels is similar to that reported in other border markets such as Tijuana and Ciudad Juárez, which reported 0.6% vacancy at the end of 1Q 2022.

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Another relevant indicator to consider is the rental price that, motivated by low vacancy, increased from $4.6 dollars per monthly square meter in March 2021 to $5.3 at the end of March 2022, reaching levels not seen in this market in the last four years. .

It is expected that during the second and third quarters of the year the speculative bet of the developers of Tijuana and Tecate will be activated with greater force, together with the custom-made projects that manage to negotiate in order to partially balance the current mismatch between offer and demand, which could continue to push up rental prices.