Mexicali prepared to satisfy the growing need for industrial supply on the border
Solili | March 28, 2023 |

Mexicali is the second market with the highest industrial demand activity in the Baja California region, after Tijuana. The aerospace, electronics and household appliances, medical products, biotechnology, information technology, medical services, transportation and wine sectors have boosted their economic growth.

In the center of both markets is Tecate and they make up the western border line that borders the United States where the proximity to San Diego has allowed

that the strong bilateral relationship that has allowed a diversity of companies to favor these markets when settling in Mexican territory be strengthened.

Of interest: The following industrial submarkets capitalized on Monterrey's demand during 2022

The accumulated demand of more than 80,000 square meters in 2022 was mainly made up of class B warehouses. Industrial warehouses between 1,000 and 5,000 square meters concentrate 60% of the rented spaces in 2022.

Developers in the area have advanced by leaning towards the BTS or custom-made projects modality, which started at the beginning of 2022. These projects were executed during the first three quarters of the year, which generated from there a significant drop in construction in progress that closed in February 2023 with just over 130,000 square meters.

The occupation of a couple of warehouses in Mexicali during 2022 that exceeded 12,000 square meters stands out, both on Boulevard Lázaro Cárdenas and one of them for the production of electronics. This appearance of large-format sizes may come from the unsatisfied demand that Tijuana experienced throughout 2022 with its lowest level of historical vacancy.

Consult here: Baja California industrial markets aimed at reversing the decline in their vacancy rates

Another trend points to traditional developers in the area becoming active again at the same time that new participants are beginning to see the possibility of undertaking new investments.

The advance of inflation and a probable slowdown of the market in the United States are likely to generate adjustments in industrial demand for the main Mexican markets, but in the case of Mexicali, the accumulated figures for January and February 2023 already greatly exceed the amounts demanded. in the first quarter of 2022.

This prominent border market currently has more than 3% vacancy, which allows it with more than twenty industrial buildings to meet the requirements of those tenants who are looking for 800 square meters to 47 thousand square meters.

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