EL PASO, TX AND CIUDAD JUAREZ
INDUSTRIAL LEASING AND SALES FORECAST

Ciudad Juarez Industrial market continues to show signs of improvement.

Established industrial companies in Ciudad Juarez are experiencing considerable growth. Manufacturing companies demand for expansion together with warehouse/distribution and logistics operators are having a positive impact in Ciudad Juarez, an optimistic and positive growth into 2015.

The average rental rates for Class A space in Ciudad Juarez is $4.25 to $4.50 per square foot per year. Class B space averages $3.75 to $4.00. In El Paso the Industrial lease rate for Class A space is $3.75 to $4.75 per square foot per year.

The Ciudad Juarez market occupancy is approaching 90% as a result of increased demand for space resulting in a strong positive absorption. Approximately two-thirds of total leasing continues in the Southeast submarket. Approximately 2.8 million square feet of Gross leasing activity year to date is of existing companies within the Ciudad Juarez Industrial market.

New companies are starting to look at entering the Ciudad Juarez Industrial Market, a positive sign of improvement in the global economy.

Ciudad Juarez is the prime maquiladora location. El Paso and Ciudad Juarez offers industrial opportunities to new companies. An excellent opportunity for companies to reduce labor and freight cost, and is one of the global manufacturing favorite destinations because of logistics to move products in and out at a lower cost.

Source: SIOR

www.sior.com

FOXCOM has three new plants totaling 1.2 million square feet in their new campus in San Jeronimo, Mexico near the international port of entry of Santa Teresa, New Mexico on the western outskirts of Ciudad Juarez.   The new campus has two forty room dormitories for visiting managers and engineers, and a community center.

Foxcom, is a multibillion dollar company based in Taiwan.  It manufactures name brand computers, cell phones and other electronic gadgets .  Foxcom has spent about $240 million so far to build the first part of its campus.  The new campus covers about 150 acres and eventually is to grow to about 600 acres.  Foxcom is planning to build a fourth plant on campus early next year.

Foxcom has about 19,000 employees in Mexico working in five cities in eight plants, including the three San Jeronimo plants, and 2,000 employees in another computer plant near the Juarez airport.  Foxcom is planning to put all of the company’s Mexico operations at the San Jeronimo campus. 

A new Anapra highway between San Jeronimo and Downtown, Juarez  will allow a labor pool of about 400,000 people that live in Anapra and its surrounding neighborhoods  located less than five miles from the new campus.  

800 managers which include 160 engineers are employed in the new campus.   A total of 7,381 employees assemble 15,000 to 40,000 computers, laptops and servers for Dell. At this time much of the work force travels long distance to the campus on buses provided by Foxcom.   Most managers drive their own cars.  Most workers get paid 85 pesos a day, or approximately $6.70, various bonuses , attendance and food increases the weekly pay to approximately $75.00 a week.

A proposal to expand the Santa Teresa airport runway to handle cargo planes is being planned.  Eventually the Union Pacific Railroad plans to move to Santa Teresa.  The proximity to an international port of entry will allow the campus to be designated a Mexico free-trade zone giving the company tax advantages, making it faster and less expensive to move truck shipments across the border.

There is no doubt that the San Jeronimo-Santa Teresa area will flourish.  The El Paso and Juarez land markets offer diversified industrial  opportunities.

Source: El Paso Times, 2010

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