Juárez Real Estate | El Paso REDCo | Where Business is Headed

real estate overview - 3rd quarter 2011

Cd. Juarez, Mexico is the largest industrial real estate market along the U.S. / Mexico border with 60.4 MSF. Since, 1969 Cd. Juarez has been home of some of the largest manufacturing firms in the world, with a strong presence of automotive, medical, appliances and electronics companies.

As reported last quarter there are two Electrolux supplier buildings under construction totaling over 320 KSF. This quarter another 39KSF of construction was started in the Electrolux campus as Intermex is expanding BMP’s facility. Automotive lighting also has a 100 KSF expansion underway at their plant in the Omega Park and there is a 162 KSF facility underway in San Jeronimo.

Industrial Market Statistics
Market	Rentable Area SF	Vacancy Rate %	Availability Rate %	Net Absorption SF	Under Construction SF	Net Avg. Asking Lease Rate S/SF/YR
North	13,898,054	6.3%	7.4%	0	100,000	$3.75
West	9,965,903	24.5%	27.3%	(103,184)	0	$3.75
Central	4,531,714	13.0%	13.0%	0	0	$3.75
Southwest	7,724,908	18.0%	18.0%	51,758	0	$4.25
Southeast	19,390,520	16.8%	16.8%	(162,851)	0	$4.25
South/Electrolux	3,481,486	4.7%	4.7%	0	340,516	$4.40
San Jeronimo	1,480,000	0.0%	0.0%	0	162,000	$0.00
Total	60,472,585	14.4%	15.1%	(214,277)	602,516	$3.92

The level of industrial construction in Cd. Juarez is the highest it has been since the 2nd quarter of 2009. Currently there are five buildings under construction including three at the Electrolux campus, one in San Jeronimo and one in the Omega Park.

Industrial vacancy in Cd. Juarez improved in the first half of 2011.

As has been the case for most of the year, new leasing activity has come predominately from companies moving from one building to another resulting in little or no net gain.