JP de Kervor, Director of Cushman & Wakefield who specializes in ...

downtownbeeMechanics

Nov 18, 2013 (3 years and 6 months ago)

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Presented by JP de
Kervor www.Cushwake.com (858
)
220.0640

BAJA CALIFORNIA

INDUSTRIAL REAL ESTATE

©JP de Kervor

All rights reserved

January 16, 2013

REAL ESTATE

IN 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.

Monterrey

Juarez

Tijuana

Guadalajara



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 ESTATE

IN BAJA

MEXICALI 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 ESTATE

IN BAJA

MEXICALI Total Market Area
│ Square Feet

Grupo Nelson

4.7 million

25%

Grupo IAMSA

3.4 million

18%

Grupo PIMSA

4.5 million

24%

CPA

1.3 million

7%

Grupo Maran

2.1 million

11%

Calafia I

518,000

3%

Sahuaro

1 million

6%

Calafia II

36,000

0%

P.I. Progreso

900,000

5%

Cucapa

270,000

1%

Jean
-
Paul de Kervor

Lic. #
01037619 Director M
+1 (
858) 220
-
0640 T
+1 (858)
334
-
4042 F
+1 (858) 452
-

3206

REAL ESTATE

IN BAJA

MEXICALI
│ Vacancy

Total Available Building Inventory (Sq. Ft.):

2.3 Million

Total Land Inventory (Sq. Ft.):

21.8 Million

REAL ESTATE

IN BAJA

MEXICALI 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 ESTATE

IN BAJA

MEXICALI 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 ESTATE

IN BAJA

MEXICALI Sample Availability
│ 150K+

Maran

Videocon

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 ESTATE

IN BAJA

NEW 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 ESTATE

IN BAJA

SAN 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 CALIFORNIA

INDUSTRIAL

REAL ESTATE

TIJUANA
│ 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 CALIFORNIA

INDUSTRIAL

REAL ESTATE

TIJUANA
│ 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 CALIFORNIA

INDUSTRIAL

REAL ESTATE

TIJUANA
│ 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 CALIFORNIA

INDUSTRIAL

REAL ESTATE

TIJUANA
│ Otay Mesa Total

Class A,
12,762.00

Class B,
5,477.00

Class C,
3,637.00

72 Buildings

Ave. 50k SF

101 Buildings

Ave. 126k SF

73 Buildings

Ave. 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 CALIFORNIA

INDUSTRIAL

REAL ESTATE

TIJUANA
│ 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 A
Class B
Class C
15 Buildings

Ave. 59K SF

16 Buildings

Ave. 57K SF

8 buildings

Ave. 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 CALIFORNIA

INDUSTRIAL

REAL ESTATE

$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
2008
2009
2010
2011
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 CALIFORNIA

INDUSTRIAL

REAL ESTATE

Baja 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 CALIFORNIA

INDUSTRIAL

REAL ESTATE

Baja 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 ESTATE

IN 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