2012 Global Market report - NAI Global

Saltillo, Coahuila, Mexico
San Luis Potosi, 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
Saltillo is the capital of Coahuila, located in Northeast Mexico.
Saltillo ranks second in Mexico for international exports.
Saltillo is located 180 miles south of the US border with
Laredo, Texas. Saltillo is the 20th largest city in Mexico with a
population of approximately 800,000. The region comprises
the municipalities of Saltillo, Ramos Arizpe and Arteaga. Saltillo
is headquarters to Grupo Industrial Saltillo, a Mexican
conglomerate making home appliances, silverware and auto
parts.
37% of cars and 62% of trucks produced in Mexico are
assembled in Saltillo, ranking it first in Mexico, and providing
a key platform for the global automotive industry. Saltillo’s
principal sectors include automotive, metal fabrication,
electronics, plastics, appliances and aerospace. GM, Chrysler
and Freightliner are established in Saltillo. Global suppliers
such as ITT Industries, Magna Steyr, Quimmco, Johnson
Controls and John Deere also maintain operations.
Major industrial developers in Saltillo include Amistad, Davisa,
Finsa, CPA and Avante-Alianza, all located throughout eight
industrial parks. Current vacancy rate for Class A industrial
space is: 4% The industrial sector saw continued activity
during 2011. Companies expanding in the market included;
JCI, Nova Steel, Coil Plus , Delphi, Magna Formex, BIC, Venture
Steel, Deacero, Kuehen & Nagel, Commercial Vehicle Group,
Stone Ridge, Axle Alliance, Behr and Whirlpool. Activity is
projected to remain consistent through 2012. Industrial lease
rates remained flat during 2011. Low vacancies equated too
few concessions or free rent. Saltillo may see slight increases
in lease rates during 2012, due to increased activity and less
inventory. Whirlpool finished the expansion of its facility with
a 700,000 SF plant. Seven new industrial buildings were
delivered by Amistad, Davisa, Finsa, and Avante-Alianza
Derramadero during 2011.
The office sector in Saltillo is relatively small. Saltillo offers
two high rise buildings with 20 floors each; small, two or three
floor office buildings are still customary. Lease rates were flat
for 2011 and expected to remain the same for 2012. The
current Class A vacancy rate is 10%.
Two shopping malls currently operate in Saltillo. No new
developments are planned for 2012. A trend in the market is
for small strip center developments offering 30 spaces or less.
Saltillo offers investors a skilled, educated labor force with a
30 year tradition of manufacturing with foreign firms.
The proximity to the US and 45 minute driving distance to
Monterrey make it an excellent location.
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
San Luis Potosi (SLP) is the geographic center of Mexico and
located adjacent to 10 neighboring states. It is situated on
NAFTA Highway 57, linking North and South America. SLP’s
strategic hub for logistics hosts the premier Inland Port and
Free Trade Zone (FTZ) in Mexico; Interpuerto. SLP is home to
global operations such as GM, Toyota, Daikin MQuay, Magna,
Cummins and Valeo. Primary sectors include metal fabrication,
appliances, automotive and aerospace.
Central Mexico and SLP continue to be excellent destinations
for global manufacturers when logistics plays a strategic role
for the location decision. 70% of the Mexican market is located
within a five hour radius from SLP. There are 13 industrial parks
in SLP, including the FTZ and inter-modal services offered at
Interpuerto. By the end of 2011, industrial inventory rates fell
to 10%. During 2011 SLP welcomed Daikin McQuay, Loreal,
Cummins DPC, Magna (Automotive) and LORVA (Logistics),
among others, to the market. Between 2008 and 2011 land
prices increased inside industrial parks on average from
$20/SM to $29/SM. Between 2009 and 2011 industrial lease
rates fell 13% to 15%. Strong competition among developers
offering flexible terms ensures that 2012 will continue as a
“tenants market.” In January 2011, only 119,166 SF was
under construction at Logistik IP. In 2011, Lorva Logistics
relocated operations to an owned 100,000 SF facility. Prudential
at Millennium Industrial Park has initiated a 200,000 SF project
to be completed during 2012. A significant portion of the
available inventory should be absorbed during 2012. Key state
incentives, manufacturing cluster development, FTZ growth
and logistics projects will drive demand for existing facilities.
SLP’s office sector is comprised of low rise projects. During
2011, most tenants were Mexican firms. Minor speculative
office construction is projected for 2012, with lease rates and
land values remaining stable.
Walmart, Costco, Home Depot, Fabricas de Francia, Soriana,
Gigante and Chedraui are taking advantage of SLP’s growing
consumer incomes and strategic location. During 2011, Grupo
Carso launched its newest commercial center anchored by
Liverpool. Retail construction in 2012 will focus on new
neighborhood centers with lease rates projected to increase.
SLP’s unique location on the NAFTA 57 Highway, world class
infrastructure, strategic FTZ’s and Inland Ports remain a draw
for companies looking at this market. The excellent quality of
life, expanding automotive, appliances, medical and aerospace
sectors will continue to bring business to SLP.
Saltillo At A Glance
RENT/SF/YR
low High effective avg. Vacancy
doWntoWn offIce
New Construction (AAA)
$ 11.14 $ 16.72 $ 13.37 8.00%
Class A (Prime)
Class B (Secondary)
suburban offIce
$
$
7.80
6.68
$
$
10.03
7.80
$
$
8.91
6.68
10.00%
9.00%
New Construction (AAA)
$ 13.37 $ 16.72 $ 13.37 2.00%
Class A (Prime)
Class B (Secondary)
IndustrIal
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
$
$
$
$
$
7.80
6.74
3.60
4.50
5.40
$
$
$
$
$
8.91
7.80
4.44
5.04
6.24
$
$
$
$
$
8.91
6.74
3.84
4.68
6.00
3.00%
3.00%
4.00%
4.00%
N/A
Downtown
$ 10.03 $ 15.60 $ 11.14 10.00%
Neighborhood Service Centers
Community Power Center
$ 7.80
N/A
$ 10.03
N/A
$ 8.91
N/A
12.00%
N/A
Regional Malls
Solus Food Stores
$ 11.14
N/A
$ 28.42
N/A
$ 15.00
N/A
11.00%
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
N/A N/A N/A N/A
N/A N/A N/A N/A
$ 2.78 $ 3.71 $ 121,095.96 $ 161,606.48
$ 1.67 $ 3.71 $ 72,744.70 $ 161,606.48
$ 13.93 $ 27.87 $ 606,786.60 $1,214,008.80
$ 11.14 $ 18.58 $ 485,255.04 $ 809,339.20
San Luis Potosi 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
$
$
$
$
$
$
$
$
$
$
$
N/A
6.86
4.28
6.86
6.86
4.28
2.14
4.85
N/A
12.86
14.41
21.43
21.43
N/A
$
$
$
$
$
$
$
$
$
$
$
N/A
12.86
6.99
12.86
12.86
6.99
3.00
5.14
N/A
21.43
25.87
30.01
30.01
N/A
$
$
$
$
$
$
$
$
$
$
$
N/A
9.86
5.64
9.86
9.86
5.64
2.57
4.99
N/A
17.14
20.16
25.72
25.72
N/A
N/A
10.00%
10.00%
5.00%
5.00%
5.00%
15.00%
11.00%
N/A
2.00%
5.00%
10.00%
10.00%
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
$ 150.00 $ 600.00 $ 607,029.40 $ 2,428,117.60
$ 20.00 $ 35.00 $ 80,937.25 $ 141,640.19
$ 20.00 $ 35.00 $ 80,937.25 $ 141,640.19
$ 50.00 $ 100.00 $ 202,343.13 $ 404,686.27
$ 400.00 $ 800.00 $ 1,618,745.07 $ 3,237,490.14
$ 150.00 $ 600.00 $ 607,029.40 $ 2,428,117.60
2012 Global Market Report n www.naiglobal.com 76