Presented by JP de Kervor (858) 220.0640 BAJA CALIFORNIA INDUSTRIAL REAL ESTATE ©JP de Kervor All...

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


REAL ESTATEIN BAJAMEXICALI City Map │ Industrial Parks


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%


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


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


REAL ESTATEIN BAJAMEXICALI Sample Availability │ 150K+

MaranVideocon

Cosmo Accuride


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.


REAL ESTATEIN BAJASAN Luis Rio Colorado│ Industrial Zones

Newest Port of Entry



BAJA CALIFORNIAINDUSTRIALREAL ESTATETIJUANA│ Industrial Zones


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.


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.


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




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


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


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


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


Presented by JP de Kervor (858) 220.0640 BAJA CALIFORNIA INDUSTRIAL REAL ESTATE ©JP de Kervor All...

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