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

real estate overview - 2nd quarter 2012

Cd. Juarez, Mexico is the largest industrial real estate market along the U.S. / Mexico border with 60.3 MSF. Since 1969 Cd. Juarez has been home to some of the largest manufacturing firms in the world, with a strong presence of automotive, medical, appliance and electronics companies. The Cd. Juarez manufacturing sector continued to recover in the second quarter with increasing production volumes and employment levels.

Growth has been supported by stability within the U.S. economy, the near shoring trend that is bringing back some manufacturing from Southeast Asia to North America and decreasing violence in the U.S. / Mexico border region. Overall there was 949 KSF of gross absorption and 417 KSF of net absorption in the second quarter. The breadth of demand along with positive employment figures within the maquiladora industry are signals that the local economy may be starting a transition towards recovery.

Industrial vacancy declined further in Cd. Juarez in the second quarter due to 417 KSF of net absorption. Vacancy stands at 13.8%, still well above historic average but below the all-time high of 15.0%. Overall there are 95 vacant buildings in Cd. Juarez.

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	13,697,860	6.7%	7.0%	88,532	0	$3.80
West	9,970,151	27.1%	27.1%	4,272	0	$3.65
Central	4,457,869	9.7%	26.5%	87,156	0	$3.60
Southwest	7,705,462	15.8%	19.6%	116,621	29,400	$4.25
Southeast	19,336,391	15.2%	15.2%	120,225	32,581	$4.20
South/Electrolux	3,481,486	3.2%	3.2%	0	0	$4.25
San Jeronimo	1,642,000	0.0%	0.0%	0	0	$0.00
Total	60,291,219	13.8%	15.6%	416,806	61,981	$3.87

The last quarter saw the second best net absorption figure in the past three years driven by strong demand for additional space from a number of companies across Cd. Juarez. Net absorption was positive in every submarket while the southwest and Southeast submarkets posted the best numbers.