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A Manufacturers Guide to Industrial Real Estate in Mexico and Tijuana

A Manufacturers Guide to Industrial Real Estate in Mexico and Tijuana

Tijuana, Mexico’s industrial real estate market is mature, modern and on par with U.S. manufacturing facilities. Located on the U.S.-Mexico border with California, Tijuana is part of the CaliBaja Megaregion and home to hundreds of major international manufacturing companies in the aerospace, electronics, medical device, and automotive industries (Mexico industries).

For over 50 years Tijuana has provided manufacturers with industrial buildings and facilities (also called maquiladoras), with IAMSA being one of the largest industrial real estate developers in the region. As a CPI strategic partner, IAMSA works with CPI to streamline the site selection process and minimize ramp up time.

There are over 923 buildings and 65 industrial parks in Tijuana offering Class A, B and C industrial buildings to lease or buy. Manufacturing companies can find secure, gated facilities spread throughout the Tijuana, connected by well-maintained highways and with direct access to commercial land ports of entry. There is something for every operation in Tijuana.

Industrial Real Estate & Manufacturing Facilities in Tijuana: Mexico’s Industrial Real Estate Showcases U.S. Building Standards and Amenities

An Interview with Carlos Uribe, Site & Park Manager for IAMSA Industrial Development Group in Tijuana 

About Carlos Uribe:
Carlos has been with IAMSA for twelve years as a Site & Park Manager. A former board member of Tijuana’s Economic Development Corporation (Tijuana EDC), Carlos also holds an MBA. IAMSA is one of CPI’s strategic partners.

Industrial Building Construction for Manufacturing

With IAMSA managed properties, as well as most industrial buildings in Tijuana, you can expect state of the art construction that meets and exceeds local building standards. Additionally, IAMSA and industrial property developers often adhere to U.S. building standards and codes. From modern concrete tilt-up construction methods to energy efficient lighting. Industrial developers also incorporate U.S. ADA (Americans with Disabilities Act) design approaches.

Though you will find basic four wall shell construction, most industrial developers offer comprehensive industrial business centers, such as administrative offices, employee common areas, recreational and outdoor gathering areas, restrooms, as well as production floors and loading bays. This type of comprehensive approach also minimizes the time needed for tenant improvements and build outs, allowing manufacturers to ramp up quickly.

Tijuana Industrial Park Site Facilities and Features

Uribe tells us that Tijuana feels like home to U.S. manufacturing companies in Mexico. You can expect industrial facilities and properties to have every amenity and feature common in U.S. construction, such as:

  • Paving
  • Sidewalks
  • Drinking water
  • Sanitary drainage
  • Drainage
  • Natural gas
  • Streetlights
  • Fire protection systems
  • Electrical power infrastructure
  • Telephone and internet infrastructure
  • Security, security guard shacks with 24/7 controlled access
  • Urban transportation
  • Garbage collection
  • Gated and secure
  • Green areas
  • Employee friendly environment
  • Outdoor seating and meal areas
  • Some employee gathering and recreational facilities

Industrial Park Utilities: Electricity, Water and Gas

Industrial buildings in Tijuana have access to electricity, water and natural gas services. On par with U.S. prices, Uribe reminds us that manufacturers don’t flock here just because utility costs are favorable than in the U.S.; but rather for Mexico’s highly-skilled, low cost labor force.

Water in Tijuana is provided by the Colorado River as well as several groundwater sources such as the Tijuana River aquifer and La Mision wells. Despite water shortages of late due to the drought and changing climate, many manufacturers have back up reserve tanks to keep operations running without a hitch.

Electricity is readily available with most industrial facilities in Tijuana connected directly to substations. Baja California has 14 operational utility scale power plants with a combined installed capacity of 4,049 megawatts (MW), with effective installed capacity of 2,947 MW due to 1,102 MW destined for export to California. One of the unique aspects of electrical power in Tijuana is that Baja California’s power grid is independent from the national grid.

Industrial Building Leasing Rates in Tijuana

Tijuana averages $0.45 - $0.58 USD/SF/month for leasing a Class A industrial building. Compared to San Diego, California, which averages around $1.36 SF/month. Tijuana has over 67 million square feet currently occupied, 3.4 million square feet currently available and 2.6 million square feet under construction.

Tenant Improvements & Build Outs

It is standard practice for industrial property developers to offer amortization for tenant improvements and build outs. The amount of tenant allowances fluctuates with market conditions. Working with Shelter Companies in Mexico like CPI during the site selection and facility readiness stage can greatly improve build out completion and ramp up times.

Working with a Shelter Company and Industrial Real Estate Developer

Working with a shelter company provider like CPI under the maquiladora shelter program gives manufacturers greater time and cost advantages for every stage of expanding operations to Mexico. A crucial part of CPI’s strategy is having the experts and strategic partners to address every need a manufacturer will have. For decades CPI has cultivated these relationships, because half of doing business is what you know, and the other half is who you know who can get it done right. If you are interested in a free cost analysis for your operation, let us run the numbers for you today!

Spotlight: IAMSA’S InQbate Business Center for Light Industrial

For manufacturing companies looking to get their feet wet in Mexico, IAMSA offers their InQbate Business Centers in Tijuana, Mexicali and Tecate. These smaller modules offer companies a fast start up and a flexible plan for expansion. IAMSA’s InQbate Business Centers are ideal for warehousing, distribution, packing and assembly operations with an average of 7,000-12,000 square feet per module.

Tijuana is just the tip of the iceberg. If you are looking for other cities with a heavy manufacturing presence and readily available industrial facilities, please see Mexico’s Strategic Locations.

About IAMSA Industrial Development Group

IAMSA Group is an international industrial development firm with more than 30 years of experience developing industrial parks and industrial buildings in Mexicali, Tijuana, Hermosillo and Querétaro, based on the tilt construction method. Currently we have 15 fully delimited Industrial Parks and two independent industrial buildings in different cities of Mexico totaling more than 9 million square feet built with a portfolio of more than 100 clients.

As a company we are committed to the environment where we develop our industrial parks, so supporting the community is part of our vision, for 6 consecutive years we have managed to obtain the badge of Socially Responsible Company.

Mexico Manufacturing Industry News

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