The border city of Tijuana concentrates 9.7% of industrial inventories nationwide, according to Solili in figures from the close to 2Q 2021.

If we analyze the evolution that vacancies have had in this city, it stands out that prior to the pandemic at the end of 2019, the city registered 2.12%, being a fairly low figure when compared with the rest of the cities nationwide.

The strongest annual contraction in the last three years has been registered in August 2020 and August 2021 where it has gone from having 2.30% of vacant spaces to 0.85% its lowest level since Solili monitors this market.

This low level of vacancy triggers the response from developers in the city and as of August 2021, works in progress were recorded for 432.4 thousand square meters. which represents 5.8% with respect to its inventory. This constructive activity has also been the highest in the last three years.

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The interaction between the forces of supply and demand in this market has marked the upward trend in prices due to the low vacancy, which has allowed it to reach values of $ 5.48 per square meter per month, the highest since 2018.

About 65% of the current availability is concentrated in two submarkets such as Pacifico-Nordika with 85 thousand square meters in 6 warehouses ranging from 7 to 28 thousand square meters and El Florido-Boulevard 2000 with 75.5 thousand square meters in warehouses that cover from 900 square meters to 25 thousand square meters, in a few options.

Another relevant indicator is the strong accumulated demand that between January and August 2021 has reached 437.6 thousand square meters, which places it in the fourth position nationwide.

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But so far in the third quarter of the year, the start of new projects has been the highest figure nationwide with 177.7 thousand square meters, a sign of response from a market where there are clear opportunities to generate profitability.

Tijuana still has industrial zones that have all the infrastructure and connectivity services but that have been consumed in the last two years, so the main challenge becomes finding new locations with competitive land prices in order to contain a rise more pronounced in rental prices.

Likewise, the tendency to locate locations closer to the city that allow the development of e-commerce services will be another vein of opportunities for developers in the area, where existing class B and C buildings can be transformed into dispatch centers.