2012 Global Market report - NAI Global

Matamoros, Tamaulipas, Mexico
Mexicali, Baja California, Mexico
Contact
NAI Mexico
+1 619 690 3029
Country Data
Area (Sq Mi)
GDP Growth
GDP 2011 (US$ B)
GDP/Capita (US$)
Inflation Rate
Unemployment Rate
Interest Rate
Population (Millions)
758,449
3.9%
$1,041.09
$9,489.19
3.2%
4.5%
4.5%
109.713
Matamoros is a destination for foreign operations in Mexico,
employing over 65,000 workers, in approximately 155
industrial plants. “By the border, by the sea” and “La Gran
Puerta de Mexico” are slogans for this community, which
borders Brownsville, Texas. Matamoros is located on the
major trade corridor (NAFTA Highway) connecting Mexico
with Texas and serving all points to the Midwest and Eastern
US. Matamoros has hosted US and foreign operations since
the 1970’s.
Major sectors range from heavy steel products, metal
fabrication, automotive and electronics. Matamoros hosts
five major industrial parks. The vacancy rate was 10% at
the end of 2011. The same fall in demand and consolidation
during 2011 was reflected in Matamoros as the rest of the
Mexican industrial markets. New projects included Joerns
Health Care, Spellman, Overhead Doors, Rotronics, ATD and
CRH. More demand will occur in 2012 due to projected
expansions from existing operations and a growing supplier
base. Industrial land values remained consistent during
2011, with asking prices ranging from $30 to $40/SM. No
change is expected for 2012. During 2011, industrial lease
rates fell 10% to 20% for Class B and Class C facilities.
Shell rates averaged $.36 to .38/SF/month. Only build to
suit projects were completed during 2011. Tenants will
continue to experience a “tenants market” and receive
additional incentives.
Matamoros’ office market is primarily comprised of small
projects hosting local service industries. The outlook for
2012 is that rates will remain the same and demand will be
generated from local and regional operations.
Retail centers in Matamoros host a mix of domestic and US
franchises and big box operations. 2011 growth has been
limited to expansions of Mexican retailers; these are mainly
supermarkets (Bodega Aurrera). In 2012 there are plans for
a new HEB, Home Depot and Seven Eleven stores. Lease
rates and land prices will remain the same.
Matamoros’ unique location on the NAFTA Highway, rail
service, its border location, strong industrial tradition and
its ability to ship overnight to much of the US, make it a
destination for foreign firms to locate new projects in
Mexico. The long term outlook is very favorable through
2012 and beyond. In 2012 Matamoros will see construction
of a new international bridge, 100% dedicated to rail
services and the expansion of the cargo area at the Veterans
Bridge and Brownsville Airport.
Contact
NAI Mexico
+1 619 690 3029
Country Data
Area (Sq Mi)
GDP Growth
GDP 2011 (US$ B)
GDP/Capita (US$)
Inflation Rate
Unemployment Rate
Interest Rate
Population (Millions)
758,449
3.9%
$1,041.09
$9,489.19
3.2%
4.5%
4.5%
109.713
Mexicali is a thriving metropolitan area with 900,000+ residents.
As the capital of Baja California, it hosts over 200
maquiladora operations. Mexicali’s high work ethic
contributed to the attraction of more than 100 new
manufacturing companies to Mexicali from 1996 to 2011.
As a testimony to the city, LG is reopening its 586,000 SF
facility after two years of shifting production to Asia; LG will
assemble LCD televisions with production beginning in
November 2011.
During 2011, activity in the industrial market was slow. Five
major transactions were recorded through October 2011.
Sunpower Corporation is locating its new Mexican operation
in Mexicali at the Cambridge Campus by leasing 320,000
SF with production expected for Q1 2012. This company
manufactures and assembles solar panels. Pilkington (glass
company) expanded in 2011 by leasing 118,000 SF at
PIMSA I Industrial Park; the company has been in Mexicali
for more than 10 years. Goodrich is expanding its facility
with an additional 140,000 SF added to the existing
300,000+ SF, located at the Colorado Industrial Development;
this company is in the aerospace industry and supplies parts
to the major aerospace companies. BI Technologies is also
expanding its operation by leasing 80,000 SF at the PIMSA
IV Industrial Park; the company produces components to the
automotive sector.
Pleatco is locating its first operation in Mexicali. This
company leased 30,000 SF in the El Dorado Industrial Park;
Pleatco manufactures filters for the use of swimming pools
and Jacuzzis. Industrial lease rates will remain flat and
competitive for 2012. Prices for industrial land have
remained flat since the purchase of large development tracts
by Kellogg and Goodrich. The vacancy rate in Q3 2011 was
11.5% and dropped compared to 17% in Q3 2010.
The office market is small with most office projects no larger
than three stories and located in one of three commercial
corridors in the city. Most retail centers are small strip with
food and drug establishments that are located in anchored
neighborhood centers. Lease rates are expected to remain
flat during 2012 and Mexicali will remain a destination for
national retailers.
Mexicali holds a unique position on the Mexican border with
overnight drive times to most western US markets. Its
industrial culture, abundant water and natural gas will help
to maintain it as a destination for foreign operations through
2012 and many years to come.
Matamoros At A Glance
RENT/SF/YR
doWntoWn offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
suburban offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
IndustrIal
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
Downtown
Neighborhood Service Centers
Community Power Center
Regional Malls
Solus Food Stores
deVeloPment land low/acre High/acre
Office in CBD
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
Retail/Commercial Land
Residential
low High effective avg. Vacancy
$ 8.40 $ 18.00 $ 12.00 20.00%
$ 6.00 $ 8.40 $ 8.40 30.00%
$ 2.40 $ 6.00 $ 4.80 30.00%
$ 8.40 $ 18.00 $ 12.00 10.00%
$ 6.00 $ 8.40 $ 8.40 10.00%
$ 2.40 $ 6.00 $ 4.80 10.00%
$ 3.36 $ 4.56 $ 4.56 10.00%
$ 4.56 $ 6.00 $ 5.76 N/A
$ 6.00 $ 6.60 $ 6.36 N/A
$ 11.40 $ 14.40 $ 12.96 15.00%
$ 8.40 $ 9.60 $ 9.00 30.00%
$ 11.16 $ 12.00 $ 11.64 20.00%
$ 9.60 $ 10.80 $ 10.20 10.00%
N/A N/A N/A N/A
N/A
N/A
N/A
N/A
$ 100,000.00 $ 160,000.00
$ 75,000.00 $ 90,000.00
$ 200,000.00 $ 400,000.00
$ 150,000.00 $ 300,000.00
Mexicali At A Glance
RENT/SF/YR
doWntoWn offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
suburban offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
IndustrIal
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
Downtown
Neighborhood Service Centers
Community Power Center
Regional Malls
Solus Food Stores
deVeloPment land low/acre High/acre
Office in CBD
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
Retail/Commercial Land
Residential
low High effective avg. Vacancy
N/A N/A N/A N/A
$ 12.00 $ 21.60 $ 10.80 14.00%
$ 3.60 $ 10.00 $ 6.00 10.00%
N/A N/A N/A N/A
N/A N/A N/A N/A
N/A N/A N/A N/A
$ 3.36 $ 4.08 $ 3.72 6.00%
$ 3.60 $ 4.56 $ 4.08 8.00%
N/A N/A N/A N/A
$ 3.60 $ 6.00 $ 4.80 3.00%
$ 6.00 $ 7.20 $ 6.60 10.00%
N/A N/A N/A N/A
$ 8.40 $ 16.00 N/A 4.00%
N/A N/A N/A N/A
$ 283,400.00 $ 607,287.00
N/A
N/A
$ 101,215.00 $ 202,409.00
$ 80,972.00 $ 182,186.00
$ 202,429.00 $ 607,287.00
$ 485,830.00 $ 931,174.00
2012 Global Market Report n www.naiglobal.com 73