Www.maquilaproperties.com (858) 551.8000 Tijuana Industrial Real Estate September 15, 2010 ©Maquila Properties, Inc. Double Dip or continued growth?

Baja California Real Estate ServicesSince 1988

Maquila Properties, Inc

www.maquilaproperties.com(858) 551.8000

Tijuana Industrial Real Estate

September 15, 2010

©Maquila Properties, Inc.

Double Dip or continued growth?




Tijuana Market Overall• Tijuana has about 52 million SF of

Industrial Real Estate • Currently: 219 Buildings (up from 190

six months ago) available with about 9.9 Million SF (Down from 10.7 Million SF) averaging 45,000 SF

• Vacancy Rate is at 19% down from 20%

• Absorption is picking up, some are expanding again like Canyon Furniture



Recent Deals• Canyon Furniture – 170,000 SF $0.25/SF

– Sprinklered older Class B building on Via Rapida.

• Prime Wheel – 529,000 SF Class C purchase at $7 Million

• Techmart – 13,000 SF @ $0.36/SF NNN sublease. Class A-

• Blindajes Goldman 36,000 SF Otay Class A @ $0.30/SF











Class size # of buildings Average size

A 2,749,478 26 105,749

B 1,799,935 35 51,427

C 1,354,410 42 32,248




Source: Maquila Properties, Inc.




Buildings > 100,000 SF

• 28 Buildings (up from 25 six months ago) available

• Average asking rent is $0.38 ($0.43/SF in 2007)

• Mostly newer Class A buildings• Mostly owned by institutional investors

like FINSA, CPA, GE Capital, Prologis, Verde, Prudential




Land Prices/Construction• 1 Hectar $60/SM in El Florido (CADENA).• Prices as low as $30/SM are available in the city –

many are still asking $750/SM.• No new spec building is happening.• Rental rates and land prices are usually at least 20%

below asking. Many are renting at 60% of asking and giving free rent.

• Construction costs are about $25/SF Shell.




Conclusions• IGS, Sares Realty are liquidating local assets at 12%

CAP rates or $40/SF.• The direction is slowly positive as we have stopped

the negative absorption.• Lower rents and other costs have improved Tijuana

competitiveness vis a vis Asian manufacturers• Land is coming down, Construction, not so much

Documents

Www.maquilaproperties.com (858) 551.8000 Tijuana Industrial Real Estate September 15, 2010 ©Maquila Properties, Inc. Double Dip or continued growth?