The Tijuana Industrial real estate market is experiencing robust growth as Flex Medical (144,000 SF in Otay) and Ink Throwers (200,000 SF in La Jolla Industrial Park) grow organically into larger facilities. This has reduced the number of over 100,000 SF Facilities to Just 13 from the 17 that were available just 1 year ago. Developers like VESTA are striving to meet the demand. Vesta is finishing a 304,000 SF Spec building, the largest ever built in Tijuana without a tenant in hand. Vacancy has dropped to 5% for the first time since the 1990’s. Average asking prices have risen to about $0.44/SF NNN for class A space. The Alamar and El Florido submarkets are growing rapidly with Built to suit and speculative construction.
The total Tijuana Industrial Market represents roughly 58 million square feet currently housed in 600 buildings. Current vacancy rates stand at 5% with an annual absorption rate of two million square feet. Current average asking prices are around USD $0.40 NNN, with NNN fees adding an additional USD $0.03 per square foot.
Absorption of buildings over 100,000 SF is especially robust as evidenced by a 24% decline in available Class A buildings of this size and 31% less square footage between October 2014 and October 2015.