Overview of Economic Development in Tijuana...Overview of Economic Development in Tijuana:...

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Overview of Economic Development in Tijuana: Tijuana´s Industrial Real Estate market statistics: 1 Adriana Eguia January 24, 2019 Borders Committee

Transcript of Overview of Economic Development in Tijuana...Overview of Economic Development in Tijuana:...

Page 1: Overview of Economic Development in Tijuana...Overview of Economic Development in Tijuana: Tijuana´s Industrial Real Estate market statistics: 1 Adriana Eguia January24, 2019 Borders

Overview of Economic Development in Tijuana:

Tijuana´s Industrial Real Estate market statistics:

1Adriana EguiaJanuary 24, 2019

Borders Committee

Page 2: Overview of Economic Development in Tijuana...Overview of Economic Development in Tijuana: Tijuana´s Industrial Real Estate market statistics: 1 Adriana Eguia January24, 2019 Borders

Number of Maquilas vs Jobs (In Tijuana)

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50,000.00

100,000.00

150,000.00

200,000.00

250,000.00

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900

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1976

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2012

2013

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2016

2017

Número de Maquilas

Número de Empleos

Maquilas

Jobs

1976 Crisis 76% Devaluation

1982 Oil Crisis500% Devaluation

December´s Error1994. 48% Devaluation

2008 World crisis. 6% Devaluation

2016 Trump effect

Start of TLCAN

2000 Dotcom Crisis

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Supply (SF) vs Vacancy (%)

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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 eSupply 38,558,00 43,175,00 45,363,00 45,600,00 47,800,00 50,800,00 53,300,00 54,586,00 57,362,00 57,673,00 58,372,00 58,786,00 61,313,36 63,411,40 64,284,59 67,165,40

Vacancy % 5.8% 3.0% 4.0% 2.6% 4.6% 12.7% 13.9% 12.9% 11.7% 10.5% 9.6% 7.0% 4.8% 1.2% 2.4% 2.8%

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5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

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50,000,000

55,000,000

60,000,000

65,000,000

70,000,000

75,000,000

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

Supply (SF) vs Vacancy (%)

72.1 M

2018

Page 4: Overview of Economic Development in Tijuana...Overview of Economic Development in Tijuana: Tijuana´s Industrial Real Estate market statistics: 1 Adriana Eguia January24, 2019 Borders

Net Absorption (SF) vs Vacancy (%) vs New construction(SF)

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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 eNet Absorption 1,320,00 2,218,00 941,000 1,093,39 1,193,70 277,469 (37 6,000 1,380,00 1,446,00 1,040,00 1,000,00 2,700,00 2,030,00 3,900,00 1,263,00 3,260,00New Construction - 1,600,00 1,300,00 2,300,00 1,800,00 2,200,00 390,000 310,000 640,000 - 130,000 421,000 610,000 1,760,00 1,286,00 3,000,00Vacancy % 5.8% 3.0% 4.0% 2.6% 4.6% 12.7% 13.9% 12.9% 11.7% 10.5% 9.6% 7.0% 4.8% 1.2% 2.4% 2.8%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

11.0%

12.0%

13.0%

14.0%

15.0%

(1,000,000)

(500,000)

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1,000,000

1,500,000

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2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

3,226,0262018

1,458,2472.2%

Page 5: Overview of Economic Development in Tijuana...Overview of Economic Development in Tijuana: Tijuana´s Industrial Real Estate market statistics: 1 Adriana Eguia January24, 2019 Borders

Vacancy (%) vs Average lease rate ($USD/SF/mo)

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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 eVacancy % 5.8% 3.0% 4.0% 2.6% 4.6% 12.7% 13.9% 12.9% 11.7% 10.5% 9.6% 7.0% 4.8% 1.2% 2.4% 2.8%Average rent (SF/Mo.) Class A $0.35 $0.36 $0.40 $0.46 $0.48 $0.46 $0.36 $0.36 $0.37 $0.40 $0.42 $0.43 $0.44 $0.46 $0.47 $0.48

$-

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

2.2%2018

Page 6: Overview of Economic Development in Tijuana...Overview of Economic Development in Tijuana: Tijuana´s Industrial Real Estate market statistics: 1 Adriana Eguia January24, 2019 Borders

Industrial market watch

*Source: JLL 2018 6

Page 7: Overview of Economic Development in Tijuana...Overview of Economic Development in Tijuana: Tijuana´s Industrial Real Estate market statistics: 1 Adriana Eguia January24, 2019 Borders

How the market is distributed for us

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VERACRUZ

CANCUN

North (28%):Surface area sf: 7,996,798 Number of buildings: 66Number of clients: 61

Bajio (49%):Surface area sf: 13,777,670Number of buildings: 80Number of clients: 78

Central (24%):Surface area sf: 7,123,121Number of buildings: 34Number of clients: 33

TIJUANA

CIUDAD JUAREZ

SINALOA

PUEBLA

TLAXCALAESTADO DE MEXICO

QUERETARO

SAN LUIS POTOSIAGUASCALIENTES

GUANAJUATO

GUADALAJARA

*

*

****

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*

Automotive 29.8 %

Aerospace 8.7%

Other 16.4%Plastics 4.1%Paper 0.1%

Medical Devices 2.0%

Recreational Vehicles 5.0%

Energy 4.6%

Manufacturing 71%

Logistics 29%

Page 8: Overview of Economic Development in Tijuana...Overview of Economic Development in Tijuana: Tijuana´s Industrial Real Estate market statistics: 1 Adriana Eguia January24, 2019 Borders

Overview of Economic Development in Tijuana:

Economic Border Zone

8Adriana EguiaJanuary 24, 2019

Borders Committee

Page 9: Overview of Economic Development in Tijuana...Overview of Economic Development in Tijuana: Tijuana´s Industrial Real Estate market statistics: 1 Adriana Eguia January24, 2019 Borders

Border Survey by Deloitte

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Border Survey by Deloitte

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Excercise (Payroll + Income Tax) by Deloitte

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Page 12: Overview of Economic Development in Tijuana...Overview of Economic Development in Tijuana: Tijuana´s Industrial Real Estate market statistics: 1 Adriana Eguia January24, 2019 Borders

Inflation by Deloitte

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Final thoughts by Deloitte

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Page 14: Overview of Economic Development in Tijuana...Overview of Economic Development in Tijuana: Tijuana´s Industrial Real Estate market statistics: 1 Adriana Eguia January24, 2019 Borders

Thank you!

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