presented by jp de kervor (858) 220.0640 baja california industrial real estate ©jp de kervor all...
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Presented by JP de Kervor www.Cushwake.com (858) 220.0640
BAJA CALIFORNIA INDUSTRIAL REAL ESTATE
©JP de KervorAll rights reserved
January 16, 2013
REAL ESTATEIN BAJA
• World’s largest Privately held commercial real estate firm
• 253 offices in 60 countries
• 14,000 employees worldwide
• Worldwide transaction value (2010) $766 billion (US)
• Worldwide revenue (2010) $1.04 billion (US)
• 5 offices in Mexico D.F.MonterreyJuarezTijuanaGuadalajara
• 32 brokers in Mexico
ABOUT │ Cushman & Wakefield
Jean-Paul de Kervor Lic. #01037619 Director M +1 (858) 220-0640 T +1 (858) 334-4042 F +1 (858) 452- 3206
Jean-Paul de Kervor Lic. #01037619 Director M +1 (858) 220-0640 T +1 (858) 334-4042 F +1 (858) 452- 3206
REAL ESTATEIN BAJAMEXICALI City Map │ Industrial Parks
Jean-Paul de Kervor Lic. #01037619 Director M +1 (858) 220-0640 T +1 (858) 334-4042 F +1 (858) 452- 3206
REAL ESTATEIN BAJAMEXICALI Total Market Area│ Square Feet
Grupo Nelson4.7 million
25%
Grupo IAMSA3.4 million
18%
Grupo PIMSA4.5 million
24%
CPA1.3 million
7%
Grupo Maran2.1 million
11%
Calafia I518,000
3%
Sahuaro1 million
6%
Calafia II36,000
0% P.I. Progreso900,000
5%Cucapa270,000
1%
Jean-Paul de Kervor Lic. #01037619 Director M +1 (858) 220-0640 T +1 (858) 334-4042 F +1 (858) 452- 3206
REAL ESTATEIN BAJAMEXICALI │ Vacancy
Total Available Building Inventory (Sq. Ft.):2.3 Million
Total Land Inventory (Sq. Ft.):21.8 Million
REAL ESTATEIN BAJAMEXICALI Major Transactions│ 2012
Type Sector Location Size (SF)
New Investment Aerospace PIMSA I 80,000
Expansion Electonics PIMSA IV 88,424
Expansion Consumables Progreso 100,000
Expansion Automotive PIMSA I 110,000
Expansion Aerospace Colorado 164,000
Jean-Paul de Kervor Lic. #01037619 Director M +1 (858) 220-0640 T +1 (858) 334-4042 F +1 (858) 452- 3206
GKN
REAL ESTATEIN BAJAMEXICALI Sample Availability│ 150K+
Industrial Park Building Available Space (SF)
Colorado Industrial Park Videocon 973,173
MAG Building 230,000
Cosmo Cosmo 420,000
Desarrollo de Activos 187,077
Jean-Paul de Kervor Lic. #01037619 Director M +1 (858) 220-0640 T +1 (858) 334-4042 F +1 (858) 452- 3206
REAL ESTATEIN BAJAMEXICALI Sample Availability │ 150K+
MaranVideocon
Cosmo Accuride
Jean-Paul de Kervor Lic. #01037619 Director M +1 (858) 220-0640 T +1 (858) 334-4042 F +1 (858) 452- 3206
REAL ESTATEIN BAJANEW Industrial Park │ Nicoya Technology Park
Nicoya Group has a development base on 9 years of experience in International Manufacturing with world
buildings and the shelter concept "A Soft landing in Mexico"
Nicoya’s location is perfect for the R&D Developments, Aerospace and Electronic Manufacturing.
Jean-Paul de Kervor Lic. #01037619 Director M +1 (858) 220-0640 T +1 (858) 334-4042 F +1 (858) 452- 3206
REAL ESTATEIN BAJASAN Luis Rio Colorado│ Industrial Zones
Newest Port of Entry
Jean-Paul de Kervor Lic. #01037619 Director M +1 (858) 220-0640 T +1 (858) 334-4042 F +1 (858) 452- 3206
Jean-Paul de Kervor Lic. #01037619 Director M +1 (858) 220-0640 T +1 (858) 334-4042 F +1 (858) 452- 3206
BAJA CALIFORNIAINDUSTRIALREAL ESTATETIJUANA│ Industrial Zones
Jean-Paul de Kervor Lic. #01037619 Director M +1 (858) 220-0640 T +1 (858) 334-4042 F +1 (858) 452- 3206
BAJA CALIFORNIAINDUSTRIALREAL ESTATETIJUANA│ Market Overall
• Tijuana has 65 million SF of Industrial Real Estate of which 8.8 Million SF are vacant.
• Currently available: 149 buildings down from 219 Buildings 2 years ago.
• Vacancy Rate is at 14% down from 16% 1 year ago down from 18% 2 years ago.
• Absorption is positive – so we are heading in the right direction - Just not very fast. We only absorbed 8,000 SF 1st quarter 2012 Year end looks like less than 1 million.
Jean-Paul de Kervor Lic. #01037619 Director M +1 (858) 220-0640 T +1 (858) 334-4042 F +1 (858) 452- 3206
BAJA CALIFORNIAINDUSTRIALREAL ESTATETIJUANA│ Over 100,000 Square Feet
• 24 Available Buildings are over 100,000 SF
• The largest is 429,000 SF
• Two 300,000 SF Plus buildings came on the market in 2012
• Basically no new construction, some expansions and TI’s have kept the construction industry above water.
• 1 New Industrial Park is planned.
• 3 buildings in Pacifico and one in Otay is under contract for under $20/SF.
Jean-Paul de Kervor Lic. #01037619 Director M +1 (858) 220-0640 T +1 (858) 334-4042 F +1 (858) 452- 3206
BAJA CALIFORNIAINDUSTRIALREAL ESTATETIJUANA│ Otay Mesa Total
Class A; 12,762.00
Class B; 5,477.00
Class C; 3,637.00
72 BuildingsAve. 50k SF
101 BuildingsAve. 126k SF
73 BuildingsAve. 75k SF
Jean-Paul de Kervor Lic. #01037619 Director M +1 (858) 220-0640 T +1 (858) 334-4042 F +1 (858) 452- 3206
BAJA CALIFORNIAINDUSTRIALREAL ESTATETIJUANA│ Otay Mesa Total SF Available
• Of a total 2.7 million SF available in Otay, most is still Class A or B.• Biggest comp (under contract) is at less than $20/SF.
Class AClass BClass C
15 BuildingsAve. 59K SF
16 Buildings Ave. 57K SF
8 buildingsAve. 120K SF
Jean-Paul de Kervor Lic. #01037619 Director M +1 (858) 220-0640 T +1 (858) 334-4042 F +1 (858) 452- 3206
BAJA CALIFORNIAINDUSTRIALREAL ESTATE
2008 2009 2010 2011 $-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
Vietnam
China
Mexico
http://data.worldbank.org/indicator/NY.GDP.PCAP.CD?order=wbapi_data_value_2011+wbapi_data_value+wbapi_data_value-last&sort=asc
GDP PER CAPITA│ Vietnam, China, Mexico
Firing Costs
Mexico 52 Weeks
US 0
Vietnam 87
China 91
Jean-Paul de Kervor Lic. #01037619 Director M +1 (858) 220-0640 T +1 (858) 334-4042 F +1 (858) 452- 3206
BAJA CALIFORNIAINDUSTRIALREAL ESTATEBaja California│ Trends
• Medical is growing
• China is getting more expensive, but other Asian Locations will continue to provide low cost labor.
• Housing starts should start to increase, and that should boost Maquilas (furniture, Construction Materials)
• Most Growth will be expansions by existing Maquilas – Many that do Subcontracting
• Strong Peso Continues to increase costs in Mexico
Jean-Paul de Kervor Lic. #01037619 Director M +1 (858) 220-0640 T +1 (858) 334-4042 F +1 (858) 452- 3206
BAJA CALIFORNIAINDUSTRIALREAL ESTATEBaja California│ Conclusions
• Prices are increasing especially in Otay.
• Users - Time to buy if you can take advantage of low financing costs.
• Empty buildings selling for less than $20/SF but that may be over.
• Leased buildings at 9 - 10% cap for LT leased with solid US corporate guarantee.
• We expect to see less than 1 million SF of net absorption in 2013.
REAL ESTATEIN BAJA
• Real estate analysis and due diligence within:
Site Selection
Lease or purchase analysis
Facilities requirements analysis
Macro site selection
Incentive negotiations
Micro site due diligence
Purchase Negotiation and closing
Cushman & Wakefield
Jean-Paul de Kervor Lic. #01037619 Director M +1 (858) 220-0640 T +1 (858) 334-4042 F +1 (858) 452- 3206