The Tijuana industrial real estate market closed the year 2021 with a significant increase in its annual gross demand of 63% compared to 2020.

Specifically, the last quarter of the year registered an even greater increase of 86% compared to the same period of 2020, mainly due to the requirements of companies in the logistics, automotive, aerospace, manufacturing and packaging industry.

The strong impulse of the demand in this important border market has activated in the developers the clear signal of start of construction throughout the year.

The construction figures indicate that the highest amount in recent years has been reached during the month of October 2021, where just over 530 thousand square meters were simultaneously under construction, although in different stages of development and with different completion dates. .

Between October and December 2021, various completed projects were added to the inventory, leaving 435,000 square meters in execution that are still advancing at the beginning of 2022.

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When we focus on what is currently being built, we can see that speculative projects double custom-made projects or BTS in terms of the number of constructions, but if we analyze the quantities, both modalities are balanced where the speculative bet slightly exceeds the building footage of BTS.

This outstanding participation of speculative projects by developers of the stature of Prologis, Vesta and Meor, with a large predominance of Class A projects, is a sign of a competitive market that is taking the pulse of the required balance between supply and demand.

Another very relevant indicator of activity becomes the average rental price, which reflects an increase of more than 16% throughout 2021 to close above 6 dollars per monthly square meter.

The main submarket that concentrate construction activity in the entity are El Florido-Boulevard 2000 and Pacifico Nórdika, which together account for 98% of the areas that are built.

Of interest: 2021, an atypical year that left historical demands for industrial space

As for the dimensions of the buildings, there is a wide range of sizes ranging from 3,000 to 52,000 square meters, although the largest concentration is close to 60% between 7 and 25,000 square meters.

The zero vacancy exhibited in Tijuana, which as of December 4Q 2021 is equivalent to half a percentage point, indicates 0.1% and 1.4% in the submarkets of main construction activity, such as El Florido-Boulevard 2000 and Insurgentes-El Águila averaged with others with zero vacancy the Otay-Alamar, El Lago and La Mesa-Fast Track submarkets.

The projections for 2022 will continue to be positive in a scenario of high inflation and where inventories in the United States have been depleted, which allows the main Mexican border markets to be strengthened.