The 58 million-square-foot El Paso industrial market has seen tremendous growth over the past 22 years. In 1984, the market comprised approximately 12 million square feet of industrial space, and over the next two decades, developers, warehouse distribution companies and manufacturers have combined to increase the industrial market five fold during this period. Several established industrial developers in the El Paso area include ProLogis Trust, Five Star Development, Buzz Oates Companies, Verde Realty Services and Plexxar Development.

Most industrial properties in the tri-city area are state of the art, tilt wall concrete buildings that are conducive to a broad cross section of potential users with simple or sophisticated warehouse/distribution needs. Tenants can find space ranging from 10,000 square feet to 1 million square feet.

The major types of tenants absorbing space in El Paso are a variety of manufacturers, warehouse/distribution companies, light-assembly manufacturers, transportation/freight forwarding companies, third-party logistics providers, supplier types and companies storing both raw goods and finished product for distribution.

Lease in the El Paso area range from $3.45 to $4.75 per square foot (nnn) for Class A and B buildings with the rates varying depending upon location, interior facility improvements and property age. Triple net charges fall between $1.25 to $1.48 per square per year. Current industrial vacancy rates for Class A and B space were hovering around the 8.7 percent range as of first quarter of 2008.

nnn - Triple net lease - A lease agreement on a property where the lessee pays the lessor, rent, all taxes, insurance, and any other miscellaneous expenses that arise from the use of the property.

Source: Sonny Brown Associates, 2008

Updated: February 2008