FIBRA Prologis invested $63.7 million, including closing costs, in acquiring an industrial warehouse covering nearly 39,800 square meters in Prologis Park El Florido, Tijuana. The facility, purchased from Prologis, its sponsor and main supplier of industrial assets, is fully leased in dollars to important tenants like DSV Global, a logistics and transportation specialist, and Vertiv, which focuses on technological infrastructure solutions, according to SiiLA.

FIBRA Prologis has focused its investment strategy on two key sectors in Mexico to capitalize on the nearshoring boom. On the one hand, there are industrial markets centered on manufacturing, such as Tijuana, Ciudad Juárez, and Reynosa, which have gained prominence due to their proximity to the U.S., making them critical hubs for supply chain relocation. On the other hand, consumption-driven markets like Mexico City, Guadalajara, and Monterrey present opportunities linked to companies focused on distribution, logistics, and commerce.

This explains why, in addition to the recent investment in Tijuana —and not including the majority stake acquisition of FIBRA Terrafina in August, which doesn’t automatically add properties to its portfolio—FIBRA Prologis has made two major investments in Reynosa and Mexico City this year, with a combined value of $217 million. In July, the trust expanded its presence in Reynosa by acquiring a 25,000-square-meter industrial facility in Villa Florida Industrial Park. Then, in September, it added eight buildings in the O’Donnell Puente Mexico industrial park in Mexico City, totaling more than 139,300 square meters of GLA.

Despite these strategic investments, Tijuana is becoming increasingly prominent within FIBRA Prologis’ portfolio.

Currently, the trust owns 49 industrial properties in Tijuana, making it its second-largest market in terms of the number of properties, just behind Mexico City. Regarding GLA, Tijuana ranks third in FIBRA Prologis’ portfolio, with over 652,000 square meters, trailing only Monterrey, which has 680,000 square meters, and Mexico City, which leads with over 1.7 million square meters.

It is important to note that while Tijuana is neither the market with the most properties nor the largest GLA in FIBRA Prologis’ portfolio, it has been the fastest-growing market proportionally since 2020.

Data from SiiLA FIBRA Analytics and FIBRA Prologis reports show that, since 2020, its GLA in Tijuana has grown by approximately 49%, surpassing growth in other key markets such as Ciudad Juárez (39%), Monterrey (35%), and Reynosa (30%).

In contrast, during the same period, FIBRA Prologis’ presence in Guadalajara remained virtually unchanged, and its GLA in Mexico City only grew by 6%. This more moderate growth in the capital and Guadalajara is partly due to both markets already holding the most significant GLA volumes in FIBRA Prologis’ portfolio in 2020. Additionally, it reflects the growing interest of FIBRA Prologis in leveraging nearshoring opportunities in northern Mexico, where the demand for industrial space continues to rise.

Nonetheless, Tijuana’s rise is no coincidence. Tijuana is one of the most in-demand markets nationally, with one of the four lowest vacancy rates in the country, around 1.8%.

Today, this market is the fourth largest in Mexico, with around 8.5 million square meters, and continues to see an upward trend in new inventory deliveries, characterized by smaller facilities compared to the rest of the country. Despite these new deliveries, positive net absorption has kept vacancy low and driven up market rents, mainly due to the strength of industries such as electronics, capital goods, healthcare, and automotive, which account for nearly 46% of Tijuana’s GLA.

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