•DEMAND: Tijuana’s proximity to the huge consumer market of Southern California and the expansion of cross-border e-commerce fulfillment centers are fueling a high demand for industrial space in the city with vacancy rates reaching new lows, according to real estate firms.
•MARKET: Despite the coronavirus downturn, Tijuana’s industrial real estate market reported a net absorption of 1.85 million square feet by the end of 2020 Q3, according to Cushman & Wakefield. Moreover, the firm also reported a vacancy rate of 2%, the lowest ever reported.
•CALIFORNIA: “Logistics is a (relevant) issue in Tijuana, not to meet domestic demand but rather that of Southern California….It is a new component that has greatly promoted absorption”, said Juan Carlos Rodríguez, managing director at Cushman & Wakefield’s Tijuana office.
•TIJUANA: Known as a manufacturing assembly base, Tijuana (pop. 1.6 million) is poised to grow in attractiveness due to the enactment of the new USMCA trade agreement and the US commercial tensions with China. The demand for industrial real estate could be a first sign of this.
