2012 Global Market report - NAI Global

Tijuana, 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
Tijuana is located in Northwest Mexico in the state of Baja
California. With its shared border with San Diego, CA, it is the
busiest border crossing in the world. Tijuana has hosted the
largest concentration of foreign manufacturing firms in Mexico
for over 40 years due to its position to ship overnight to most
parts of the Western US. Tijuana is a bi-cultural border city
with a population of 2 million people.
Tijuana’s industrial market is comprised of 72.5 million SF.
More than 900 global firms are established in Tijuana’s 45
industrial parks in sectors ranging from aerospace, medical
devices, electronics and general industrial. By the end of
2011, vacancy rates had fallen from 12.6% to 11.72%,
despite continued consolidations creating vacant space.
Vacancy rates for 2012 are forecasted to fall below 8%. 2011
continued as a tenant’s market with lease rates remaining at
their lowest levels in 20 years. The 15% to 25% discounts
have been well received by firms trading older space for lower
rates in newer projects. Net absorption of 1.2 million SF was
driven by projects such as INZI (192,000 SF), Energy Labs
(288,000 SF), Ryerson (80,000 SF), Elektra (80,000 SF),
Andrea (110,000 SF) and Samsung (225,000 SF). These
firms are expanding to take advantage of the cost differential
between Mexico and home markets. New construction during
2011 included Andrea, INZI, Samsung and Ryerson. New
construction is expected for build-to-suit project for other
Samsung suppliers during 2012 in or nearby the El Florido
Industrial Park. Lease rates will rise during 2012 in
submarkets lacking sufficient inventory to support new
demand. 2012 is expected to continue as a tenant’s market
in submarkets with excess inventory.
Two Class A office towers were completed during 2011;
Corporativo Tapachula and World Trade Center. Office lease
rates remained flat. 2012 will reflect clients relocating to trade
for better quality space and/or to consolidate from other
locations in Tijuana.
Retail investment from domestic and international firms
continued during 2011. 2012 will see a limited amount
of new commercial centers with the biggest projects
concentrated in the southeast and south (Blvd 2000).
The critical mass of industrial firms, well developed industrial
clusters with a proximity to western US markets and a 40 year
history with foreign manufacturers, makes Tijuana a strong
market for investors.
Tijuana 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
$
$
$
$
20.00
13.00
6.50
N/A
N/A
5.50
$ 25.00
$ 20.00
$ 13.00
N/A
N/A
$ 11.00
$
$
$
$
22.00
16.50
9.00
N/A
N/A
8.00
32.00%
18.00%
25.00%
N/A
N/A
25.00%
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
Downtown
$
$
3.00
3.00
N/A
N/A
$
$
4.80
4.80
N/A
N/A
$
$
3.96
3.96
N/A
N/A
28.00%
10.00%
N/A
N/A
Neighborhood Service Centers
Community Power Center
Regional Malls
Solus Food Stores
$
$
10.00
N/A
15.00
N/A
$ 20.00
N/A
$ 40.00
N/A
$
$
15.00
N/A
25.00
N/A
8.00%
N/A
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
$ 43.00 $ 1,500.00 $ 174,015.09 $ 6,070,294.00
N/A N/A N/A N/A
$ 60.00 $ 100.00 $ 242,811.76 $ 404,686.27
$ 50.00 $ 130.00 $ 202,343.13 $ 526,092.15
$ 30.00 $ 1,500.00 $ 121,405.88 $ 6,070,294.00
$ 80.00 $ 450.00 $ 323,749.01 $ 1,821,088.20
Panama City, Republic of Panama
Contact
NAI Panama
+1 507 302 0105
Country Data
Area (Sq Mi)
GDP Growth
GDP 2011 (US$ B)
GDP/Capita (US$)
Inflation Rate
Unemployment Rate
Interest Rate
Population (Millions)
Panama City At A Glance
Panama has long been the crossroads of the Americas and
the crux of commerce for over 500 years. Today, Panama’s
advantageous location continues to drive business in a variety
of sectors as evidenced by Panama housing the second
largest free trade zone in the world, the largest financial center
in Latin America, a port system that boasts more cranes then
Brazil and better then 10% GDP growth the first half of 2011.
Considered the regional hub for the Americas, firms like
Procter & Gamble, Caterpillar, 3M, Dell, BASF and 3PL have
established significant operations in Panama, taking advantage
of several fiscal benefits and world class infrastructure.
Development activity in downtown Panama City, as well as
the suburbs, has continued to grow to support office and
warehousing needs. Class A industrial parks have seen
strong growth over the last year with several important
projects breaking ground to provide mixed use solutions for
warehouse, showroom, office, hotel and convention space.
The International Airport and the Panama Canal are both
undergoing expansion projects to keep pace with the demand.
Office vacancy has remained under 6% throughout 2011.
With a total existing office inventory of 838,911 SM, Class
A+ buildings make up 8% (70,750 SM) of the total existing
inventory and leases on average for $27.63/SM/month. Class
A demand is strong with average lease rates of
$24.38/SM/month and vacancy rates under 3%. Average
common area maintenance fees range from $1.35/SM/month
in Class C office to $2.43/SM/month in Class A+. Market
average maintenance fees are $1.73/SM/month. Construction
in the office market continues to plow forward with over 25
office projects underway as of Q3 2011. A total of 601,745
SM are currently under construction representing an
impressive 72% increase over existing inventory. Average sale
list price for office under construction is $2,435.54/SM.
Retail is in high demand. Several commercial strip malls are
under construction throughout the city, particularly in the
suburbs, where land values make the small projects more
attractive. Retail lease rates range anywhere from $20 to
$35/SM/month, with high end retail asking for upwards of
$40 to $80/SM/month.
Panama’s outlook for the future is extremely positive. The
Latin Business Chronicle expects Panama to post the highest
GDP growth in Latin America for the next five years.
Multinational corporations continue to see the value in
Panama as new organizations establish regional operations
in the country on a regular basis.
RENT/M 2 /MO
US$ RENT/SF/YR
low High low High 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
Flex Space
retaIl
Downtown
Neighborhood Service Centers
Community Power Center
Regional Malls
Solus Food Stores
$
$
$
$
$
$
$
$
22.00
18.50
16.00
18.00
18.00
12.00
4.00
N/A
N/A
20.00
N/A
N/A
N/A
N/A
$
$
$
$
$
$
$
$
28.00
30.00
23.00
30.00
35.00
28.00
9.00
N/A
N/A
30.00
N/A
N/A
N/A
N/A
$
$
$
$
$
$
$
$
24.53
20.62
17.84
20.07
20.07
13.38
4.46
N/A
N/A
22.30
N/A
N/A
N/A
N/A
$ 31.22
$ 33.44
$ 25.64
$ 33.44
$ 39.02
$ 31.22
$ 10.03
N/A
N/A
$ 33.44
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
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
29,119
6.7%
$29.94
$8,340.11
3.0%
4.3%
N/A
3.59
$ 1,500.00 $ 2,800.00 $ 6,070,294.00 $ 11,331,215.48
N/A N/A N/A N/A
$ 110.00 $ 650.00 $ 445,154.89 $ 2,630,460.74
N/A N/A N/A N/A
$ 400.00 $ 2,000.00 $ 1,618,745.07 $ 8,093,725.34
$ 400.00 $ 1,800.00 $ 1,618,745.07 $ 7,284,352.81
2012 Global Market Report n www.naiglobal.com 77