Behind the Deal - Tijuana Case Study
| TRANSACTION TYPE & DETAILSDate: November 2018 Transaction Type: Lease Property Type: Industrial Size: 56,370 square feet Price: $1,635,565 USD |
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Client Objectives
To keep up with their competition, an injection molding company from Los Angeles was looking to expand and relocate part of its operation into Mexico. It encompassed over a year of planning to fully understand the costs and steps associated with moving part of an operation into a foreign country.
The client was introduced to several shelter operators before selecting one. These shelter companies are one way to expedite setting up a new operation and are legal entities fully established and registered in the Mexican government. They offer clients a chance to visit one of their entities with all of the proper permits in place to start operations right away. Shelter operators also help client compliance with local, state, and federal governments, hiring and labor-related issues, logistics, import-export, etc.
Once the client chose their shelter, the site selection began for a 40,000-60,000 square foot building.
Transaction Profile
It was important that the building was multi-tenant to allow future expansion capabilities, however, with less than 3 percent vacancy in Tijuana, there were limited existing buildings that met the client’s criteria.
Solution
Atisa provided the option for a build-to-suit that would expand into another lot inside their park, in the case of future growth.
Atisa also expedited the construction of one of their buildings that were under construction in order to meet the high season.
