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Northern Baja Industrial Market Tightens
Interest in the Northern Baja industrial market in Q2 2018 is being fueled, in part, by a challenging economic climate in California. Research by CBRE shows the Tijuana, Mexicali, and Tecate markets are tightening as demand intensifies.
“One of the key drivers that we hear anecdotally from users located in California that are searching in Mexico, is that it is becoming substantially more difficult for them to operate economically in the state of California,” said CBRE’s Joe Smith. “Today, the main users in the Northern Baja market are aerospace and medical manufacturers, so those tenants that are entering are becoming increasingly sophisticated and requiring a greater level of tenant improvements.”
The overall Q2 vacancy rate for Northern Baja increased to 3.6% from Q1, with net absorption rising to 356,500 square feet, construction reached more than 1.7 million square feet and the NNN lease rate increased to $0.45.
For comments, questions or concerns, please contact Dennis Kaiser


