2012 Global Market report - NAI Global

Querétaro, 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
Queretaro, with two million residents, is located in Central
Mexico’s “El Bajio” region. It is positioned on the NAFTA
Highway (57), linking South America, Mexico and North
America. Queretaro is also a major logistics hub with 70%
of Mexico’s Gross Domestic Product (GDP) located within a
135 mile radius. During the 1990’s a portion of Mexico
City’s manufacturing sector relocated and Queretaro
benefitted as the first major city to the north from Mexico City.
Queretaro hosts 20 industrial parks and zones. The automotive
sector has four assembly plants, more than 60 Tier 1 suppliers,
over 100 Tier 2 suppliers, and employs more than 35,000
workers. Aerospace is the other leading sector, hosting major
Canadian and Brazilian companies in a rapidly growing cluster.
Industrial vacancies during 2011 rose to 10% as a result of
new construction designed to target new foreign manufacturers.
During 2011, expansions and new industrial investments
included aerospace suppliers such as Lear Jet, Embraer and
Eurocopter. Samsung relocated new projects from Asia, and
3PL distribution operations such as Grupo CID expanded in
the market. Industrial lease rates fell 10% from 2009 to 2011.
Strong competition among developers to offer creative
incentives and flexible lease contracts ensures that 2012
will continue as a “tenants market.” At year end 2011,
180,000 SF was under construction at El Marques Industrial
Park. Queretaro and Innovation Technological & Industrial
Parks are building new facilities for 2012. Calamanda on
Highway 57 is offering a new 300,000 SF facility. 2012 Pent
up demand from 2010 to 2011 will drive additional industrial
leasing activity during 2012. Lease rates will remain stable
through 2012 and new construction will be primarily for
build-to-suits for lease or purchase. Industrial land prices
will rise in high demand submarkets of the city during 2012.
Queretaro offers a combination of low and midrise office
projects. New projects include Empresalia, Business Center
and Central Park. Lease rates in 2012 are projected to
remain stable.
Retail growth continues and was steady during 2011. For
2012, ALTEA Retail Market Center will initiate construction
as the largest commercial project in Latin America, projecting
over 5,000,000 SF.
The unique location on the NAFTA 57 Highway in Central
Mexico, proximity to major population centers, the perception
of a unique quality of life and the expanding electronics,
automotive and aerospace sectors make Queretaro a great
destination for business.
Querétaro At A Glance
RENT/SF/YR
low High effective avg. Vacancy
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
$
$
$
$
$
$
$
$
$
$
$
$
$
13.93
8.57
4.45
12.86
10.28
5.14
2.57
3.85
5.14
13.93
14.76
17.15
17.15
N/A
$
$
$
$
$
$
$
$
$
$
$
$
$
20.43
17.15
9.48
17.15
16.53
10.29
3.43
4.71
6.43
20.43
24.48
25.72
25.72
N/A
$
$
$
$
$
$
$
$
$
$
$
$
$
17.18
12.86
6.97
15.00
13.41
7.71
3.00
4.28
5.78
17.81
19.62
21.43
21.43
N/A
12.00%
15.00%
10.00%
20.00%
10.00%
15.00%
20.00%
10.00%
5.00%
3.00%
10.00%
5.00%
5.00%
N/A
deVeloPment land low/m 2 High/m 2 low/acre High/acre
Office in CBD
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
Retail/Commercial Land
Residential
3.9%
$1,041.09
$9,489.19
3.2%
4.5%
4.5%
109.713
N/A N/A N/A N/A
N/A N/A N/A N/A
$ 50.00 $ 70.00 $ 15,564.86 $ 21,790.80
$ 30.00 $ 60.00 $ 9,338.91 $ 18,677.83
$ 300.00 $ 800.00 $ 93,389.14 $ 249,037.70
$ 150.00 $ 600.00 $ 46,694.57 $ 186,778.28
Reynosa, Tamaulipas, 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
Reynosa is one of the largest cities in Tamaulipas, with a
population of nearly 1 million people. Reynosa is located on
the Northeast border of Mexico, across from McAllen Texas,
on the renowned NAFTA Highway. It is one of the busiest
commercial border crossings in Northeast Mexico and offers
direct access to distribution routes into Central and Eastern
US. Reynosa recently inaugurated its third international
crossing, Anzalduas Bridge, to facilitate cross border traffic.
Reynosa is one of the top five maquiladora markets in
Mexico, offering 13 industrial parks and hosting 350
manufacturing operations. Main sectors include electronics,
metal fabrication, automotive and medical devices. Reynosa
hosts LG, Emerson, Jabil, Motorola, Panasonic, Corning,
Fisher and Paykel as well as many other global firms.
Industrial vacancy rates held steady at 12% for most of
2011. With increased leasing activity from Q4 2011, through
the first half of 2012, vacancies are expected to drop during
the next six months. During 2011, Reynosa experienced
increased leasing activity compared to 2010. By the end of
2011, transactions totaling over 1.6 million SF were
completed in Reynosa. Major projects included Corning Cable
(297,000 SF), Cequent Automotive (220,000 SF), Cal-Comp-
New Kinpo Group (126,000 SF), Gear for Sports/Hanes
(170,000 SF) and Kauffman Manufacturing (80,000 SF).
From 2008 to 2010, lease rates fell 20% to 25%, however
lease rates remained flat during 2011. Developers in 2012
will continue to entice prospects with aggressive rates and
rental concessions. There were no new speculative buildings
constructed during 2011. None are projected for 2012, until
excess vacancies are absorbed. With pent up demand and
the ability to compare Mexico vs. home markets, many firms
are planning expansions to launch during 2012.
Reynosa’s office market is comprised of small projects
hosting local service industries. Most are located near major
arterials or near the border and residential communities.
Lease rates remained stable during 2011 and no changes
in lease rates are expected for 2012.
Retail availability is limited to a small number of anchored
shopping centers and strip centers in the metro area. Lease
rates remained stable during 2011. Vacancies remained low
due to strong demand from Mexican retail tenants. Walmart
and a number of US franchisers have entered the market.
Reynosa’s unique location on the NAFTA Highway, its border
location and its ability to ship overnight to the US, continue
to make Reynosa a strong market for investors.
Reynosa At A Glance
RENT/SF/YR
low High effective avg. Vacancy
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
$
$
$
$
$
$
$
$
$
$
$
$
9.00
6.00
2.40
8.50
6.00
2.40
3.48
3.84
N/A
5.00
3.00
3.00
4.00
N/A
$
$
$
$
$
$
$
$
$
$
$
$
18.00
8.40
6.00
22.00
8.40
6.00
4.32
4.50
N/A
6.50
5.00
5.50
5.50
N/A
$
$
$
$
$
$
$
$
$
$
$
$
12.00
8.00
4.00
17.50
8.00
4.50
3.78
4.20
N/A
5.33
4.85
5.33
5.33
N/A
6.00%
2.00%
4.00%
7.00%
1.00%
3.00%
12.00%
13.00%
N/A
N/A
2.00%
N/A
6.00%
N/A
deVeloPment land low/sf High/sf low/acre High/acre
Office in CBD
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
Retail/Commercial Land
Residential
3.9%
$1,041.09
$9,489.19
3.2%
4.5%
4.5%
109.713
$ 2.29 $ 3.32 $ 99,751.71 $ 144,618.20
$ 2.29 $ 2.98 $ 99,751.71 $ 129,807.90
$ 1.72 $ 2.52 $ 74,922.68 $ 109,770.44
$ 1.72 $ 1.95 $ 74,922.68 $ 84,941.41
$ 2.18 $ 3.21 $ 94,960.14 $ 139,826.63
$ 4.59 $ 11.47 $ 199,939.02 $ 499,629.74
2012 Global Market Report n www.naiglobal.com 75