Maquila Properties, Inc Baja California Real Estate Services Since 1988 Tijuana Industrial Real Estate 2nd Quarter 2012 Absorption is slowing, What’s next? May 16th, 2012 ©Maquila Properties, Inc. All rights reserved Presented by JP de Kervor www.maquilaproperties.com (858) 551.8000 Global real estate transaction volumes are down. Maquila Properties, Inc Baja California Real Estate Services Since 1988 www.maquilaproperties.com (858) 551.8000 Intraregional Transactoion volumes are down Maquila Properties, Inc Baja California Real Estate Services Since 1988 www.maquilaproperties.com (858) 551.8000 Tijuana Market Overall Maquila Properties, Inc Baja California Real Estate Services Since 1988 • Tijuana has about 58 million SF of Industrial Real Estate of which 8.7 Million SF are vacant. • Currently available: 154 buildings down from 219 Buildings 18 months ago. • Vacancy Rate is at 15% down from 16% 6 months ago down from 18% 18 months ago. • Absorption is positive– so we are heading in the right direction - Just not very fast. We only absorbed 8,000 SF 1st quarter 2012 www.maquilaproperties.com (858) 551.8000 Availability ZONE # GRADE L / S INDUSTRIAL PARK BUILDING Availble size OFFICE AREA CLEAR HEIGHT DOCKS GRADE LEVEL/ RAMP CONSTRUCTION DATE POWER KVAS Maquila Properties, Inc .. Baja California Real Estate Services Since 1988 2 c L / S Otay, seccion dorada FORMER HITACHI 429,763 43,095 (2 levels ) 8' - 40' 35 10 1985 ? 2,840 2 a L Otay Chilpancingo Chip B001 268,599 23,530 28 34 4 2009 350 2 b- L Otay, Bellas Artes COVIDEN 241,000 40,000 24 14 2 1997 7,000 3 c S BLVD FUNDADORES SCRIPTO TOKAI 230,270 3,875 27 - 17 7 2 1998 3-500 KVAS a L Alamar Sares 230,000 2,270 28 34 3 2010 1000 2 c S OTAY Tocabi 193,692 14,117 27 - 32 11 2 1987 3500 5 f 1 2 3 4 5 6 BLVD INSURGENTES N-2 EDIF WALDOS 185,140 20 2012 7 FRONTERA (AMB BLVD INDUSTRIAL) 84,128 19,067 18 - 26 18 2 1985 El Potrero T2 171,718 to suit 29 19 4 2008 L girasol II planta 2 166,933 1,500 18 - 24 4 1990 4,250 L Ind. Park Pacifico R&R Building B 162,050 13,976 22 22 1994 95 / ex y rem. 23002 3 (300 - 500 - 750 ) S Carret libre a Rosarito Fetasa Carret libre a Rosarito 157,000 L / S Baja Maq Insurgentes Kimstar Facility b- L 4 a L 4 b- 3 b- 3000 8 9 10 11 1980+ 12 c- www.maquilaproperties.com (858) 551.8000 156,636 2,152 24 6 1 1997 3500 4 b- 4 b L girasol II planta 1 144,111 18 LA CAMPIÑA 1,2,3,4, 5 Y 6 140,825 18-24 1992/ 1995/ 2005 7500 69kv transformer 14 2 1000 Maquila Properties, Inc 15 X Baja California Real Estate Services Since 1988 1000 4 b LA CAMPIÑA 7, 8, 9, 10, 11 y 12 132,817 16 - 19 2 5 c EL FLORIDO LA PRESA 130,000 20 4 2 b L Otay SanyoMfg 126,823 8,576 19 - 22 5 a L Valle bonito CIENEGA 124,000 925.5 22' 8 4 2008 Blvd 2000 Cpa tij B001 122,801 4,865 28' 10 1 2009 500 36,441 32 2001 3000 16 4 17 1982 2000 kvas / 480 V kvas / 208 V 500 18 19 a 20 2 b L OTAY Energy Lab 120,000 5 b- S EL FLORIDO samsung 110,000 2 a L OTAY BELLAS ARTES PLAMEX IV 104,820 3 b- L Ind. Park Pacifico R&R Building A 104,279 4 c- L BLVD BENITEZ Bodega #1 101,184 2 d S OTAY 9 NORTE # 19026 101,180 21 28 8 1 BUILT TO SUIT 28 22 ????? 2009 750 KVAS 22,437 19 18 1 1995 2 (1,000 - 1,500) 22 23 24 25 26 www.maquilaproperties.com (858) 551.8000 14 - 19' 300 / 500 Maquila Properties, Inc Baja California Real Estate Services Since 1988 www.maquilaproperties.com (858) 551.8000 Absorption is almost 0 Thank you CBRE www.maquilaproperties.com (858) 551.8000 Maquila Properties, Inc Baja California Real Estate Services Since 1988 Tijuana Transactions 1st Q 2012 Maquila Properties, Inc Baja California Real Estate Services Since 1988 Nombre pies cuadrados edificio Foxconn -195,978 Prologis Alamar #3 Filtec Foxconn Bucher Crockett HyperPlastics Global Packaging Solutions Biotix Ceva CMC Converting Coast Alluminum Direcciones III Dela Mexcal J and J plastics Birdair Baja Fur Vaso King Cooper Bussman -82,000 -55,000 -42,000 -42,000 -21,076 -16,663 -16,250 11,000 11,959 14,601 15,522 31,000 31,000 32,000 41,306 75,342 100,000 115,269 FINSA TIP Frisa- El Aguila Iamsa, Nave Oasis Prologis TIC #4 Azteca C Flora y Fauna de Atisa Campina 16 Girasol Girasol Girasol Azteca E Iamsa- Valle Bonito, Pradera Iamsa- Valle Bonito, Cienega Prudential valle sur Prologis Alamar #1 Verde Otay I Prologis Frontera CPA Calle Doce Norte Absorción neta 8,032 Thanks to Jorge Solis at CBRE www.maquilaproperties.com (858) 551.8000 Comentarios Where are they being leased? Maquila Properties, Inc Baja California Real Estate Services Since 1988 www.maquilaproperties.com (858) 551.8000 Conclusions • Prices and Vacancy are stable. Maquila Properties, Inc Baja California Real Estate Services Since 1988 • Time to buy if you can take advantage of low financing costs. • Empty buildings selling for less than $20/SF. • Leased buildings at 10% cap for LT leased with solid US corporate guarantee. • Election year pause and uncertainty may be a factor. • We expect to see less than 1 million SF of net absorption in 2012. www.maquilaproperties.com (858) 551.8000