Industrial Report Northeast Mexico 1Q 2014 Tamaulipas, Nuevo Leon, Coahuila, Chihuahua Americas Research
Northeast Mexico Industrial Overview JLL s Industrial Services is a dedicated team focused 100% on customer service and industrial real estate solutions offered in a uniform and coordinated manner between our offices in Mexico City and Monterrey, Tijuana and Guadalajara.
3 Northern Mexico industrial report 1Q 2014 Northeast s Overview City Total Stock (s.f.)1q14 Availability (s.f.)1q14 Vacancy Rate Total Absorption (s.f.) Construction 2014 Average Lease Rate (usd/s.f./year) Apodaca 42,499,803 3,263,747 8% 298,966 404,332 $4.56 Ciénega de Flores 11,032,987 732,668 7% 287,077 259,997 $4.56 Escobedo 10,792,041 721,326 7% 96,498 $4.56 Guadalupe 11,578,620 2,486,567 21% 162,500 $4.56 Monterrey 577,465 100,500 17% 180,586 $4.56 San Nicolas 2,423,687 Sta. Catarina / Garcia 20,013,956 1,023,021 5% 98,447 165,000 $4.56 TOTAL MMA 98,918,559 8,327,829 8% 961,575 991,829 $4.56 Saltillo / Ramos Arizpe 23,413,702 1,522,945 7% 471,736 656,883 $4.68 Reynosa 29,377,813 2,164,693 7% 422,964 $4.16 Nuevo Laredo 8,665,000 1,115,620 13% $3.60 Matamoros 17,685,917 1,526,984 9% $4.20 Cd. Juárez 61,266,280 6,868,929 11% 371,373 $4.20 Chihuahua 17,002,369 775,101 5% $4.00 TOTAL NORTHEAST 256,329,640 22,302,100 9% 2,227,648 1,648,712 $4.20 Northern Mexico Property Clock 1Q 2014 Bottoming Chihuahua, Nuevo Laredo Monterrey Matamoros Saltillo, Ramos. A, Derramadero Reynosa, Cd. Juarez
Northern Mexico industrial report 1Q 2014 5 outlook Monterrey Metropolitan Area Industrial During the first months of 2014, the Monterrey Metropolitan Area recorded increasing amount of activity with the search of space with an absorption of 1 M. Big boxes are now scarce in this market, so developers have started to plan and construct new buildings in the all the Metro Area. Key Indicators Total Stock 1Q14 98,918,559 Availability 8,327,829 Average lease rate (USD//year) $4.56 Vacancy rate 9% Total absorption 961,575 Monterrey Saltillo Industrial outlook This market still remains as one of the most active markets in Northern Mexico due to its strategic location an excellent industrial market conditions. Saltillo is the base for mayor manufacturing plants like Chrysler, GM, Freightliner, John Deere and opening this year FIAT that has encouraged the markets growth in the Derramadero area specifically. Because of the lack of space in this market, developers, such as Davisa, Finsa and Avante have started to construct new buildings. This market remains as one of the most active in the north of Mexico, attracting a variety of clients. Key Indicators Total Stock 1Q14 23,413,702 Availability 1,522,945 Average asking rate (USD//year) $4.68 Vacancy rate 7% Total absorption 471,736 Saltillo, Derramadero, Ramos Arizpe
6 Northern Mexico industrial report 1Q 2014 Reynosa Industrial outlook The city of Reynosa is connected to McAllen, Texas by three bridges: McAllen-Hidalgo-Reynosa International Bridge, Pharr-Reynosa International Bridge and Anzalduas Bridge, These bridges help to facilitate international trade. An increase in industrial activities have been registered for 1Q 2014. Investment in new projects is not expected by institutional developers as the market has spaces to offer. Lease rates are still low. Key Indicators Total Stock 1Q14 29,377,813 Availability 2,164,693 Average lease rate (USD//year) $4.16 Vacancy rate 7% Total absorption 422,964 Reynosa Matamoros Industrial outlook Matamoros shelters approximately 140 maquiladoras dedicated mostly for US export, this represent a great part of the Matamoros economy, including the import-export of the fabricated products in the city. During the last couple of years low lease rates have prevailed and companies know that they have great opportunities to expand and install their operations within this market. This have caused new investments in the market during 2013. An increase in industrial activities is expected during the 2014. Key Indicators Total Stock 1Q14 17,685,917 Availability 1,526,984 Average lease rate (USD//year) $4.20 Vacancy rate 9% Total absorption - Matamoros
Northern Mexico industrial report 1Q 2014 7 Nuevo Laredo Industrial outlook Nuevo Laredo s economy is based on commercial and industrial importing and exporting between Mexico and United States, and has a complex infrastructure to expedite merchandise flow between those two countries. Nuevo Laredo offers its import/export services by land or railroad, merchandise distribution and consulting services. This market is very attractive for logistics companies, because of the easy access and infrastructure the city provides for its international crossings. Prices and rent conditions are favorable for tenants. Investment in this market is still lower than expected. Key Indicators Total Stock 1Q14 8,665,000 Availability 1,115,620 Average lease rate (USD//year) $3.60 Vacancy rate 13% Nuevo Laredo Total absorption - Chihuahua Industrial outlook Chihuahua, the State capital and is located in a privileged geographic region, at approximately 231 miles from the U.S. by the federal highway 45 in Mexico. The activity in this market has been quite slow in the past months. The market is tenant favorable with low lease rates. Key Indicators Total Stock 1Q14 17,002,369 Availability 775,101 Average asking rent (USD//year) $4.00 Vacancy rate 5% Chihuahua Total absorption -
8 Northern Mexico industrial report 1Q 2014 Cd. Juárez Industrial outlook Ciudad Juarez is considered one of the most populated Northern border-cities of the country. Located near El Paso, TX., its population makes it the eighth biggest metropolitan area in Mexico. Throughout the city we can find exclusive industrial zones which include 17 industrial parks that shelter more than 279 companies. Lease rents are still in favor of tenants, also, significant spaces are available for lease and this helps reactivate the market s industrial activity. This situation has provided the expansion of companies already settled in the market. There has been no reported construction for the last years. Key Indicators Total Stock 1Q14 61,266,280 Availability 6,868,929 Average lease rate (USD//year) $4.20 Vacancy rate 11% Total absorption 371,373 Cd. Juarez
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