Donna, Texas: A hub for new warehouse and storage developments in the era of Nearshoring

By Viviana Cervantes

South Texas

September 11, 2023

The expansion project of the Donna-Rio Bravo International Bridge, aimed at facilitating north-to-south cargo transportation, could ignite the development of new industrial buildings, especially those related to warehouses, storage sites, and distribution centers.

Having direct access to interstate highways, airports, and other border crossings between Mexico and the United States is a significant advantage for industries, particularly in the context of nearshoring.

Carlos Telles, First Vice President Broker at CBRE in McAllen, stated, "Cities like Donna are attractive for new industrial buildings, not just the traditional ones, for example, distribution centers for materials that bring materials closer to the contractor before continuing on their local route."

These constructions are known for their flexibility in storing various types of merchandise for varying durations, depending on the customer's needs.

The Donna International Crossing is finalizing its preparations with an investment of approximately $100 million to adapt and build facilities that allow the transit of cargo units. This investment sets a positive tone for economic development.

"I know there is available land, and people are considering the location, but it all depends on the crossing capabilities and how distribution is generated with other nearby bridges," Telles added.

Speculation about new constructions in the Rio Grande Valley also extends to the vicinity of the Anzaldúas International Bridge and the Pharr International Bridge, given the ongoing expansion projects.

Industrial Availability

Currently, Pharr and McAllen, Texas, stand as the most industrially attractive cities, with buildings in planning and under construction. As a result, it is expected that by the end of 2023, 100% of industrial availability will be occupied.

"Usually, before the construction of a new industrial building concludes, they are already rented out, and development can take up to 12 months. We are talking about between 200 to 400,000 square feet, but they have to be divided among several warehouses. This presents a significant challenge as there is no immediate inventory," Telles explained.

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