DAUM COMMERCIAL HELPS CALIFORNIA-BASED MANUFACTURER EXPAND WITH LEASE OF INDUSTRIAL FACILITY IN MEXICO
The nearly 52,000 square-foot Tijuana location will increase the tenant’s current capacity by 300% and create employment opportunities
DAUM Commercial Real Estate Services has completed the lease of a 51,908 square-foot standalone industrial facility, Los Pinos II, situated on 1.85 acres of land in the central Baja California submarket of Tijuana, Mexico, on behalf of the lessee, Pacific Transformer.
The new tenant, an Orange County, California-based manufacturer that specializes in distribution transformers for medical, military, and automotive products, is expanding within Mexico and will increase its local operations capacity by 300% with this lease, according to Anthony Bergeman, SIOR, an Executive Vice President and Principal at DAUM Commercial.
“Based on ongoing trends related to quality control and time-to-market, compounded by recent severe supply chain disruptions, many U.S.-based firms are shifting a larger percentage of their overseas manufacturing operations to North America, especially to areas that are in close proximity to transportation routes,” explains Bergeman. “Responding to our Client’s need for a larger facility to grow their Mexico operations, we were able to identify this property in Baja California, ideally located just 40 minutes from the U.S./Mexico border near several interstate and international highways to facilitate convenient product distribution.”
According to Bergeman, the Tijuana market in particular remains highly sought-after by U.S. manufacturing and distribution businesses. In Q3, the market experienced the lowest vacancy rates seen in five years, with total available space falling well below 1%. The increased demand for available distribution centers, logistics services, and e-commerce in Tijuana proved resilient throughout the pandemic.
“Drawing upon close industry relationships, we cooperated with fellow SIOR Broker Arturo Valdes of NAI Mexico to source the opportunity for Pacific Transformer to lease this high-quality asset within a supply-constrained market,” says Bergeman. “While the building was still occupied, a termination agreement was reached and we were able to negotiate immediate occupancy for our Client once the existing tenant vacates.”
The industrial asset is further situated within a matured industrial zone near residential areas with an ample pool of skilled workers, Bergeman notes.
Justin Richardson, Chief Financial Officer at Pacific Transformer, adds: “In line with many of our customers deciding to near-shore their operations, we’ve made our operations in Mexico a strategic focus. The DAUM team brought us the opportunity to occupy a larger industrial space that is both adjacent to key transportation routes and near an area with a strong labor pool.”
Through occupying Los Pinos II, Pacific Transformer anticipates adding a few hundred jobs to the local market.
Built in 1990 and recently retrofitted, the building is ideal for a manufacturing or assembly business. The property features a ceiling height of 18 feet, four dock-high doors, and two grade-level doors, and provides convenient access to Via Rapida, a major city route.
Los Pinos II is located at Gustavo Díaz Ordaz 18803 in Tijuana, Mexico.
About DAUM Commercial
DAUM Commercial Real Estate Services is a leading provider of commercial real estate services including brokerage, tenant representation, consulting, leasing, sales and property management. Founded in 1904, DAUM focuses on longstanding client relationships and draws upon its century-long track record to deliver steadfast insights and proven results to clients across the U.S. DAUM has ten offices throughout Southern California and Arizona. More information is available at www.daumcommercial.com.