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.

TIJUANA, Mexico (December 13, 2021) – DAUM Commercial Real Estate Services completed leasing a 51,908 square-foot standalone industrial facility called Los Pinos II, situated on 1.85 acres in Tijuana's central Baja California submarket for Pacific Transformer.

The Orange County, California-based manufacturer specializes in distribution transformers for medical, military, and automotive products. This lease represents a 300% increase in local operations capacity.

"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." —Anthony Bergeman, SIOR

The facility is ideally located just 40 minutes from the U.S./Mexico border near several interstate and international highways to facilitate convenient product distribution.

Tijuana's market experienced the lowest vacancy rates in five years during Q3, with total available space falling below 1%. Demand for distribution centers, logistics services, and e-commerce proved resilient throughout the pandemic.

DAUM cooperated with SIOR broker Arturo Valdes of NAI Mexico to source this opportunity. A termination agreement enabled immediate occupancy once the existing tenant vacates. The industrial zone features proximity to residential areas with an ample pool of skilled workers.

"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." —Justin Richardson, CFO of Pacific Transformer

Pacific Transformer anticipates adding several hundred jobs to the local market through this expansion.

Built in 1990 and recently retrofitted, the property features 18-foot ceiling height, four dock-high doors, two grade-level doors, and convenient access to Via Rapida, a major city route. Los Pinos II is located at Gustavo Díaz Ordaz 18803 in Tijuana, Mexico.