Developers in Texas Boost Demand for Cross-Border Warehousing and Logistics, Emphasize Readiness for Shippers

Ocotillo Capital Partners (OCP), a real estate investment firm focusing on logistics in Texas, led by principal Nick Dyer, is optimistic about the growth potential spurred by nearshoring trends along the U.S.-Mexico border. OCP’s ongoing project, Capote International Business Park in Pharr, Texas, is strategically positioned to tap into this growth. The park, spanning 300 acres, is slated to offer 1.1 million square feet of industrial space upon completion, with a recent addition being a 160,000-square-foot Class A spec building. Recognizing the significance of high-quality warehouse facilities in driving nearshoring activities, Dyer emphasizes the pivotal role South Texas will play in reshaping North American supply chains.

The Pharr-Reynosa International Bridge serves as a key trade artery, facilitating significant commercial traffic between the U.S. and Mexico, amounting to $45.8 billion in trade in 2023 alone. The Reynosa area, with over 240 maquiladoras employing 174,000 workers, underscores the region’s industrial importance. Notably, international corporations such as TRW Automotive, LG, and Nokia have established maquiladora operations in Reynosa.

Dyer observes that the demand for logistics space in the Rio Grande Valley primarily stems from companies with existing operations in Mexico, signaling the early stages of nearshoring adoption. The top commodities traversing the Pharr-Reynosa bridge range from gasoline and petroleum to electronics and agricultural products.

Capote International Business Park, rooted in a family legacy dating back to the 1960s, continues to evolve under Nick Dyer’s stewardship, with plans for expansion into Laredo and exploration of opportunities in El Paso and Brownsville. Brownsville, in particular, with its proximity to Matamoros and the burgeoning Port of Brownsville, emerges as a promising location for future logistics ventures.

In parallel developments, Waabi, an autonomous trucking operator, has established its flagship terminal in Lancaster, Texas, leveraging the state’s strategic significance in shipping corridors. Additionally, Mainfreight Ltd., a New Zealand-based logistics giant, is set to inaugurate its first Texas facility in Haslet, aiming to capitalize on the region’s logistics infrastructure.

Meanwhile, Kongsberg Automotive, a global Tier 1 automotive supplier, reinforces its presence in northern Mexico with a new factory in Ramos Arizpe, signaling a commitment to expanding its flow-control systems business in North America. These developments collectively underscore Texas’ growing prominence as a hub for logistics and manufacturing, propelled by evolving trade dynamics and technological advancements.

 Inspired by: https://www.freightwaves.com/news/borderlands-mexico-developers-bullish-on-texas-logistics-real-estate