In the first quarter of 2021, Meor real estate development fund began the construction of a complex that will spur industrial growth in Tijuana. The company has committed itself to an investment of over US $35 million.
Given the economic damage inflicted by Covid-19, industrial growth in Tijuana is being consolidated to be the tip of the spear that will energize the economic reactivation of Mexico. Proof of this is the commitment that Meor has made to the border city when it began the construction of the new Hubs Tijuana industrial park in Baja California during the first quarter of the current year.
In a recent interview, Jonathan Pomerantz, Project Director at Meor, a development fund for real estate projects with a national presence that began in 2006, indicated that Hubs Tijuana is a speculative project. It is being undertaken to meet the needs of the growing manufacturing and logistics sectors in the border city. The company is betting on future steady industrial growth in Tijuana to make the project a success.
” At present, Tijuana is one of the Mexican cities with the least vacancies in Class A industrial buildings. Because of this circumstance, the average rental price is the second-highest in the country after Mexico City,” said Pomerantz. Therefore, Meor sees the present as the optimal time to increase Tijuana’s available industrial space to accommodate future industrial growth and bring real-estate-rental costs in line with other competitive markets.
Regarding Hubs Tijuana, whose speculative buildings are expected to be finished by the fourth quarter of the current year, he explained that the project represents an investment of over US $35 million. When everything has been set into motion, the project will generate 1,600 direct and 4,800 indirect jobs. Meor’s leadership has embarked on this effort due to its belief that Baja California and Tijuana are pillars for the Mexican national economy.”
This new Class A park will be situated on an 18-acre site. It will house more than 430,556 square feet of construction and will have two main buildings. Each building will have two office centers and six warehouses of more than 5000 square feet each. Moreover, the park will have exclusive lanes for transportation of cargo and personnel vehicles, green and recreational areas, and 3,700 KVAs of energy, among other features.
Jonathan Pomerantz added that Meor, with a portfolio of more than 360 projects in 15 years, plans to generate ten industrial projects that will total an investment of US $2.4 billion. This figure represents 70% more in investment than in 2020. “More institutional investors have opened the door for the company due to the success that it has had in previous years.”
The ecosystem for industrial growth in Tijuana
Earlier this year, during the official start of the construction of Hubs Tijuana, Javier Camarena, general director of Meor, pointed out that it is “a dream to create a project of this magnitude this market to drive industrial growth in Tijuana. The city ranks as one of the most important markets in the country. Hub Tijuana is a world-class project that will provide manufacturers with first-rate facilities. As a result, it will succeed in attracting industrial investment and will contribute to growing the manufacturing ecosystem that exists in the city “.
“Because this is a consolidated market, industrial growth in Tijuana is the expression of the preferences of the largest national and foreign investors. This project contributes another element to this ecosystem that has had a significant effect on other economic sectors of the country. Principally, the effects have been most predominant on the real estate sector and industrial sectors.”
“The industrial real estate sector will surely be one of the pillars that will allow the economy to reactivate itself, attract investment, and generate good-paying jobs. Hubs Tijuana will be a strong driver of industrial growth in Tijuana,” asserts Camarena.
For her part, Fernanda Mena, director of Promotion of the Secretary of Economic Development of Tijuana, assured that the city “stands out for its geographical location, social uniqueness, and economic dynamism. Over the years, it has become a key option for national and international companies that seek to invest and expand their operations.”
“Hubs Tijuana, located only 15 minutes from the Otay International border crossing, represents the confidence of investors to continue betting on the development of the region,” she said.
The economic development official explained that Tijuana currently has more than 75 parks and industrial zones that translate into approximately 818 million square feet. “This inventory offers investors a wide choice of industrial real estate that has access to reliable public services.”
Photo: By Comisión Mexicana de Filmaciones from México D. F., México – Tijuana, Baja California, CC BY-SA 2.0, https://commons.wikimedia.org/w/index.php?curid=66036973