Ciudad Juarez Industrial Real-Estate Market Overview: Q-2 2013
During the second quarter of 2013, the Ciudad Juarez industrial real-estate market continued to gather steam vis a vis Q1. Net industrial real-estate absorption in Juarez increased by 1.2 million square feet during the April to June period. This gain represents more than double the pre-2008, and augurs well for future investment in Ciudad Juarez’s industrial sector during the remainder of 2013. At the end of Q1 Ciudad Juarez industrial real estate vacancy rates stood at 14.1%, while by the end of the second quarter the figure was reduced to 12.1%.
Increased demand coming out of the recession that began in 2008 in the Ciudad Juarez industrial real-estate market during 2013 has been driven mainly by an acceleration of activity in the city’s already sizable automotive sector, while growth in other industries has remained somewhat muted. Even though there has been over a million square feet of net new absorption, there remains 7.3 million square feet of unoccupied industrial building space in the Ciudad Juarez real-estate market. This surplus of empty space has kept price per square foot rental prices stable.
Beyond the Ciudad Juarez industrial real market, many view the prognosis for manufacturing in Mexico to be a positive one for the foreseeable future. It is generally felt that the City and its landlords will feel the positive impact of manufacturers returning from the Far East, and from China in particular, as the cost of wages and transportation continues to rise in that part of the world.
Ciudad Juarez is the largest industrial real-estate market along the U.S. – Mexico border and is home to some of the most widely known global manufacturing firms such as: Delphi, A.O. Smith, Johnson & Johnson, Foxconn and Electrolux.