Logistics and parcel companies have established operations in border industrial real estate markets to take advantage of the cross-border trend. These markets include Tijuana, Ciudad Juárez, Reynosa, Nuevo Laredo, and Nogales. Among the companies that have set up operations are Maersk, Ryder, DSV Solutions, G-Global, DHL Supply Chain, UPS, Amazon, and others.
The cross-border trade, in this case, between Mexico and the United States has driven logistics activities, and everything involved, such as industrial spaces, land, air, and maritime transportation. In this context, the demand for industrial spaces for logistics operations in border cities has remained constant.
Tijuana, the largest cross-border hub
Tijuana is the largest industrial real estate market on the Mexican border and consistently has the highest demand for logistics spaces each year. Its border with San Diego, California, makes it a key access point for trade between Mexico and the United States, a factor leveraged by companies like Maersk, which recently opened a new warehouse in Tijuana.
Companies such as DHL, DSV, G-Global, Logistik, Amazon, and Mercado Libre have also set up their logistics warehouses in Tijuana, particularly in submarkets near the border crossing, such as Otay.
In recent years, the development of industrial spaces to host companies seeking to establish operations in Tijuana, taking advantage of its cross-border quality, has strengthened. This market features an abundance of stand-alone buildings, but there are also major industrial park projects like Vesta Park Mega Region, Hubspark Northwestern, Industrial Gate Pacific, Parque Industrial Pacífico, and others.
In addition, Tijuana has advanced logistics infrastructure, with its network of highways and ports, Tijuana International Airport, and its connection to the port of Ensenada. The city also has direct access to the I-5 highway in the United States.
Cross-border market: the appeal of Ciudad Juárez
Last year reached a historic high in the demand for industrial warehouse and logistics spaces in Ciudad Juárez’s industrial real estate market. Its proximity to El Paso, Texas, which almost feels like one city, provides fast and efficient access to the U.S. market. Additionally, the Santa Teresa International Bridge and the Paso del Norte border crossing enhance Ciudad Juárez’s logistics potential, cutting down time and costs.
As a result, companies like DHL, Amazon, EP Logistics, DSV, and Border Trade Logistics chose Ciudad Juárez to establish their logistics warehouses.
The high demand for logistics spaces in 2023 also fueled new developments in Ciudad Juárez, prompting developers like Prologis, Intermex, Centinela Property, Finsa, and Vesta, among others, to begin constructing industrial spaces over the past 18 months to meet this demand.
Similar to Tijuana, Ciudad Juárez boasts highly competitive road infrastructure, complemented by a rail network that connects it to various points in both Mexico and the United States, positioning the city as a strategic location for binational logistics operations.
Use the different Datoz tools to learn more about the industrial real estate markets in Tijuana and Ciudad Juárez. If you are not yet a client, request your demo.
