RMSG Strengthens Its Presence in Tijuana with a Dual Industrial Acquisition

As Tijuana’s industrial supply expands and tenant turnover reshapes the market, RMSG is betting on two assets with distinct profiles: one newly delivered and available in a strategic export hub and another vacant for a year but ideally located for regional operations.

Two investments, two strategies, and a market in transition. Are these moves the result of a well-calculated opportunity or an inevitable adjustment in Northwestern Mexico’s industrial landscape?

Pablo Culebro leads RMSG, a developer, manager, and marketer of industrial buildings in Mexico. Photo: SiiLA.

By: SiiLA News

03/25/2025

Real Estate Management and Services Group (RMSG) strengthens its presence in Tijuana by acquiring two industrial buildings totaling more than 31,000 square meters of gross leasable area (GLA). The first, located in Deer Park at Cueros de Venados, previously belonged to developer UL Baja and spans 23,500 square meters. The second, in Parque Industrial Colinas, covers 7,600 square meters in the El Florido region. With these acquisitions, the firm is expanding its influence in Baja California Norte, where, according to SiiLA, it has already developed more than five properties.

This acquisition comes at a pivotal time for Tijuana’s industrial sector, where the vacancy rate has steadily risen to 3.96% after hitting 0% at the start of 2023. This increase reflects a temporary slowdown in space absorption, even as new speculative projects continue to expand supply. However, pressure on the vacancies could intensify if industrial development and construction maintain the same pace in 2025 as in the past two years when more than 650,000 square meters were delivered annually.

While inventory growth has allowed companies to expand in Tijuana, competition from markets such as Mexicali and rising industrial land costs have driven up operational expenses, increasing tenant turnover. With rental prices climbing and availability still adjusting, market stability is beginning to reflect the impact in certain sectors.

Over the past year, according to SiiLA Market Analytics, the six sectors that traditionally drive the highest industrial demand in Tijuana—capital goods, electronics, packaging, business products and services, healthcare, and logistics—accounted for 65% of vacant space.

This vacancy is not an isolated occurrence. Currently, for every three square meters occupied in Tijuana, one becomes vacant, signaling a shift in absorption cycles. While demand remains strong, inventory expansion and rising costs have slowed occupancy rates, lengthening the time industrial buildings remain on the market and forcing both tenants and developers to adapt to an increasingly uncertain landscape.

Deer Park—A Key Asset in Changing Times

Deer Park industrial building in Cueros de Venados, Tijuana. Photo: UL Baja.

In this context, the acquisition of Building “01” in Deer Park at Cueros de Venados stands out. The property is currently fully available, with a base rental price of $9.15 per square meter plus additional operating costs, including taxes, insurance, and maintenance (NNN).

Its design, particularly its 9.14-meter clear height, 1,500 KVA electrical capacity, 16 dock doors, two ramps, fire protection system, and skylights optimizing natural lighting, positions it as a property suited for light manufacturing and assembly rather than high-volume storage. Its location reinforces this focus: less than 30 minutes from the San Ysidro-Otay border crossing, it facilitates the export of finished goods and the supply chain for raw materials, aligning with the dominant industrial profile of the region.

For RMSG, this acquisition is a calculated bet to capture demand continuing to shift toward Mexico due to the global reorganization of manufacturing supply chains, despite trade tensions in North America.

At the same time, the transaction represents a capital restructuring for UL Baja, as the developer is currently building the Venados II Industrial Park, located one kilometer from Deer Park. This project includes the development of two properties: the first, spanning 16,300 square meters, is expected to be delivered in the second quarter of 2025, while the second, covering 14,700 square meters, could be completed by late 2026.

Colinas—The Other Side of the Investment

The Colinas industrial building in El Florido, Tijuana. Photo: JLL.

While Deer Park represents a bet on Tijuana’s industrial dynamism, Building “01” in Parque Industrial Colinas follows a different logic. At 7,600 square meters of GLA, it is not a recent addition to the local inventory but rather an established asset with a relatively stable rental profile within the market.

Located in El Florido, this property was introduced to the market nearly 25 years ago and has primarily served as a light manufacturing space. Built on-site with concrete panels, it differs from newer developments, and its infrastructure is tailored for storage and distribution operations. It features five dock doors, one ramp, a sprinkler-based fire protection system, and a 2,000 KVA electrical capacity, supporting processes that require stable infrastructure without being focused on intensive manufacturing.

Until a year ago, the property was occupied by Jeld-Wen, a U.S.-based company specializing in high-performance doors and windows. Despite its vacancy, demand for this property has remained considerable, partly due to its location, just 12.7 kilometers from Tijuana International Airport, which facilitates its integration into regional and international supply chains. Additionally, in terms of profitability, the property has a base rental price of approximately $8.40 per square meter plus NNN operating costs, which, according to SiiLA, keeps it competitive in a market where the average rental price stands at $8.50 per square meter.

Overall, Deer Park and Colinas reflect both investor confidence and the strategic adjustments shaping Tijuana’s industrial sector. For more insights on tenant movements in Mexico’s industrial real estate market, visit SiiLA REsource or contact us at contacto@siila.com.mx.

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