Tijuana is Mexico's fastest-growing industrial market

According to Marcos Álvarez, CEO of Market Analysis, Tijuana has become the fastest growing market in Mexico during the second quarter of 2022, reporting a 2.76% industrial growth rate. The CEO stated that Tijuana's gross industrial absorption was 2.61 million square feet, and 1.59 million square feet were registered under speculative construction and 633,471 in BTS.

"Tijuana is classified as a global city for being a major cultural, commercial and manufacturing dominant center in North America. It hosts a number of multinational company facilities, such as manufacturing and assembly plants in aerospace, electronics and medical device sectors."

During the second quarter of 2022, Florido was the submarket with the largest participation, accounting for nine transactions equivalent to 1,298,790 SF; followed by Otay with three transactions (465,955 SF); Libramiento with six transactions (427,845 SF); Tecate with one transaction for 313,875 SF; and El Aguila with one transaction for 106,429 SF.

Representative transactions were carried out by: Tacna, for 313,875 SF at the Vinedo Complex industrial park; NAPS (Section I), for 304,503 SF at Prologis Park Florido; Foxconn, for 292,000 SF at Gate Alamar Industrial Park; Toyoya, for 220,835 SF at Atisa Toyota; and Kenit, for 210,000 SF at Stand Alone Park.

All transactions were for manufacturing end uses and included developers such as Iamsa, Prologis, REI, Atisa and Finsa.

Several industries have established or expanded their operations in Tijuana. The main sectors were electrical-electronics (21%) and shelter (19%); they were followed by textiles (13%), medical (12%), packaging (12%), automotive (9%), recycling (9%), metal-mechanics (8%), and printing (6%). The main investor was the United States, with 61 percent of the square footage absorption. Taiwan (12%), Japan (9%), China (9%), Mexico (6%), and Germany (3%) participated in smaller scale.

Marcos Álvarez finally said that a major advantage of Tijuana is location: it is only three hours away from the ports of Los Angeles and Long Beach, the second busiest seaport in the United States.

"Of all entry ports, Tijiana holds the second highest volume of trucks and the third highest dollar value of foreign trade. Therefore, logistics and distribution play an important role in the Tijuanense economy."