Maquila Properties Tijuana Industrial Update

Presented by JP de Kervorwww.maquilaproperties.com

(858) 551.8000

Tijuana Industrial Real Estate

May 16th, 2012

©Maquila Properties, Inc.All rights reserved

2nd Quarter 2012Absorption is slowing, What’s next?

Global real estate transaction volumes are down.

www.maquilaproperties.com(858) 551.8000

Intraregional Transactoion volumes are down



Tijuana Market Overall• 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

..

ZONE # GRADEL / S

INDUSTRIAL PARK BUILDING Availble size OFFICE AREA CLEAR HEIGHT DOCKSGRADE LEVEL/

RAMP CONSTRUCTION

DATE POWER KVAS

1

2 cL / S

Otay, seccion dorada FORMER HITACHI 429,763 43,095 (2 levels ) 8' - 40' 35 10 1985 ? 2,840

2

2 a L Otay Chilpancingo Chip B001 268,599 23,530 28 34 4 2009 350

3

2 b- L Otay, Bellas Artes COVIDEN 241,000 40,000 24 14 2 1997 7,000

4

3 c S BLVD FUNDADORES SCRIPTO TOKAI 230,270 3,875 27 - 17 7 2 1998 3-500 KVAS

5

a L Alamar Sares 230,000 2,270 28 34 3 2010 1000

6

2 c S OTAY Tocabi 193,692 14,117 27 - 32 11 2 1987 3500

7

5 f BLVD INSURGENTES N-2 EDIF WALDOS 185,140 20 2012

8

b- L FRONTERA (AMB BLVD

INDUSTRIAL)84,128 19,067 18 - 26 18 2 1985 3000

9

4 a L El Potrero T2 171,718 to suit 29 19 4 2008

10

4 b- L girasol II planta 2 166,933 1,500 18 - 24 4 1990 4,250

11

3 b- L Ind. Park Pacifico R&R Building B 162,050 13,976 22 22 1994 95 / ex y rem.

230023 (300 - 500 - 750 )

12

S Carret libre a Rosarito Fetasa Carret libre a Rosarito 157,000 1980+

13

c-L / S

Baja Maq Insurgentes Kimstar Facility 156,636 2,152 24 6 1 1997 3500


Availability


14

4 b- L girasol II planta 1 144,111 18 1992/ 1995/ 20057500

69kv transformer

15

4 b LA CAMPIÑA 1,2,3,4, 5 Y 6 140,825 18-24 2 1000

16

4 b LA CAMPIÑA 7, 8, 9, 10, 11 y 12 132,817 16 - 19 2 X 1000

17

5 c EL FLORIDO LA PRESA 130,000 20 4 4

18

2 b L Otay SanyoMfg 126,823 8,576 19 - 22 19822000 kvas / 480 V 500

kvas / 208 V

19

5 a L Valle bonito CIENEGA 124,000 925.5 22' 8 4 2008

20

a Blvd 2000 Cpa tij B001 122,801 4,865 28' 10 1 2009 500

21

2 b L OTAY Energy Lab 120,000 36,441 32 2001 3000

22

5 b- S EL FLORIDO samsung 110,000 28 8 1

23

2 a L OTAY BELLAS ARTES PLAMEX IV 104,820 BUILT TO SUIT 28 22 ????? 2009 750 KVAS

24

3 b- L Ind. Park Pacifico R&R Building A 104,279 22,437 19 18 1 1995 2 (1,000 - 1,500)

25

4 c- L BLVD BENITEZ Bodega #1 101,184

26

2 d S OTAY 9 NORTE # 19026 101,180 14 - 19' 300 / 500


Absorption is almost 0Thank you CBRE



Thanks to Jorge Solis at CBRE

Nombre pies cuadrados edificio Comentarios

Foxconn -195,978 Prologis Alamar #3

Filtec -82,000 FINSA TIPFoxconn -55,000 Frisa- El AguilaBucher -42,000 Iamsa, Nave OasisCrockett -42,000 Prologis TIC #4HyperPlastics -21,076 Azteca CGlobal Packaging Solutions -16,663 Flora y Fauna de AtisaBiotix -16,250 Campina 16Ceva 11,000 GirasolCMC Converting 11,959 GirasolCoast Alluminum 14,601 GirasolDirecciones III 15,522 Azteca EDela 31,000 Iamsa- Valle Bonito, PraderaMexcal 31,000 Iamsa- Valle Bonito, CienegaJ and J plastics 32,000 Prudential valle surBirdair 41,306 Prologis Alamar #1Baja Fur 75,342 Verde Otay IVaso King 100,000 Prologis FronteraCooper Bussman 115,269 CPA Calle Doce Norte

Absorción neta 8,032

Tijuana Transactions 1st Q 2012


Where are they being leased?


Conclusions• Prices and Vacancy are stable.

• 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.

Maquila Properties Tijuana Industrial Update

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