The first quarter of 2023 ends and Tijuana's gross industrial demand registered 135,000 square meters, which allows it to rank third nationally. 

Two operations are decisive in the total figure that takes place in this period, one of them for 22,000 square meters for the logistics sector on the Pacific-Nordika corridor and another for more than 43,000 square meters that will be allocated to the biotechnology sector on the El Florido-Boulevard 2000 submarket.

See also: Guanajuato is a key investment point for industry 4.0 and electromobility

Tijuana throughout the last year has shown a sustained increase in the average rental price, which at the end of March 2023 exceeds $7 dollars per monthly square meter. This important border market in the north of the country Tijuana continues to be, together with Monterrey, Saltillo y Ciudad Juárez, making up the group that has received the greatest pressure due to the search for spaces, which affects the rise in rental prices.

Industrial developers who bet on this market compete with the construction of more than 540,000 square meters with projects ranging from 7,000 to 43,000 square meters. Of the total areas of projects that are advancing, a third began construction in the first quarter of the year and the projects are divided equally between speculative and custom-made projects.

The pace of construction in the last two quarters has made it possible to reverse the decline in vacancy, which reached its minimum level in September 2022 with 0.41% but which has already reached 1.4% at the end of the first quarter of 2023. Another present trend is income of developers entering the industrial sector attracted by the sustained demand that this sector has generated in recent quarters.

Speculative construction activity opens up opportunities for developers to take significant advantage of getting projects off the ground and ready when demand arrives. On many occasions, pre-leases are arranged that benefit the tenant and the developer in equal parts.

Of interest: Industrial construction of the country in expansion and concentrated in large-scale buildings

Tijuana has positioned itself within Mexican territory as an ideal place for manufacturing services, offering solutions that stand out in the field of aerospace manufacturing and medical devices in the country. 

The border situation on the northeast coast where it borders San Diego in California provides an ideal geographical enclave for logistics issues driven by a binational development policy that favors the demand for goods and services mainly for Mexico.

The competitive cost for manufacturing has been key to attracting foreign investment from industries such as electronics, metal-mechanics, plastics, aerospace products and medical devices, these being the ones that drove part of the demand throughout 2022.