At the end of the third quarter of 2022, construction in process in the Tijuana industrial market exceeded 415 thousand square meters at a rate that has grown almost 1.6 times in the last two years.

In the midst of the lowest vacancy reported since Solili covers this border market of 0.41% at the end of September 2022, it is not surprising that speculative constructions occupy more than 90% of what is built during the third quarter of the year, where displays a wide variety of sizes between 5 to 41 thousand square meters, with all Class A ships.

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However, these speculative constructions are characterized by being pre-leased due to the strong competition that tenants have to make spaces that meet their needs. The same is observed in custom-made projects or BTS, which does not allow vacancy to be at acceptable levels. The percentage of pre-leased warehouses is 46% of everything that is under construction.

Two other custom-made constructions of 10,000 and 28,000 square meters complete the warehouses under construction on the  Insurgentes-El Águila y Otay Alamar submarkets  and represent the remaining 10%, respectively.

Even with this footage under construction, supply is unable to meet demand. The net demand for the first three quarters of 2022 in Tijuana has been similar to that of the same period in 2021, although the gross demand for the first three quarters of 2022 has not yet reached what was recorded in the same period of 2021.

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About half of the gross absorption continues to be concentrated on the Pacifico Nordika submarket, dividing the rest between the Florido Boulevard with 33% and the Otay-Alamar submarket with 17%.

The strong pressure that impacts this real estate market has a direct consequence on rental prices that continue to rise and that, together with Mexico City, are the highest nationwide, registering values of $6.1 dollars per square meter at the end of the third quarter of the year. year.

In this important border market, as well as in Ciudad Juárez, Reynosa, Tecate y Mexicali, it is likely that we will see a greater boost from speculative construction that would seek to balance vacancies and rental prices in the medium term.