ProLogis is eyeing a summer delivery for Pharr Bridge 5. The developer ramped up construction on a 7.4-acre tract within five months of turning over keys for the park's first building, a 302,000-sf factory for Springs Window Fashion, which uses the location to manufacture mini-blinds.
Eric Brown, first vice president with ProLogis' San Antonio office, tells GlobeSt.com that the Reynosa market has a "proven demand" for additional product, with several property owners now planning new construction in the area. ProLogis' two million sf of fully occupied space is spread among three parks: ProLogis Park Pharr Bridge, Reynosa Industrial Center and Del Norte Industrial Center.
ProLogis has room to build another 800,000 sf in Pharr Bridge, a maquiladora development that gets its name from the international bridge linking Reynosa to Pharr, TX. Leases at Pharr Bridge are transacted in US dollars, with rates ranging from $5.75 per sf to $6.25 per sf triple net.
Robert Kramp, regional client services manager for Grubb & Ellis Co.'s Texas offices, says continued growth of the maquiladora industry not only fuels Mexican towns like Reynosa, but generates demand for additional industrial product on the US side of the Rio Grande. According to Kramp's latest research, more than 650,000 sf of industrial product is under construction in nearby McAllen, the Valley's largest city with the largest concentration of industrial space, 11.8 million sf.
Robert T. Huthnance Jr., the current head of ProLogis' Houston office, acknowledges the maquiladora industry has suffered as textile and food processing companies ship production to Asia, but says the US-Mexico line will continue to grow as manufacturers of vehicle parts and electronics tap the highly skilled trades of the Mexican workforce.
Huthnance, who previously oversaw ProLogis' border projects, says companies needing quick turnaround on products will continue to look to the maquiladoras because of the gateway positioning to the US and a reputation by some facilities to turn around orders within 24 hours.
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