Tijuana industrial real estate update 3rd quarter, 2011
• Slow absorption this quarter – Only 112,000 SF Net.
• Asking rents are still dropping (Class A as low as $0.29/SF !).
• Tenants are moving out of older higher priced buildings into newer buildings.
• Logistics suppliers are losing business as companies use excess capacity to store onsite.
• Tenants are turning into buyers at the low prices with low cost US financing.