Colliers Brokers 272-Acre Avila Industrial Park in Santa Teresa Toward 3 Million Square Feet of Industrial Real Estate Development

SANTA TERESA, N.M. — Colliers is brokering the development of a 272-acre industrial real estate project in Santa Teresa, New Mexico, that is planned to deliver up to approximately 3 million square feet of Class-A warehouse and industrial space, the firm announced Aug. 28.

The project, known as Avila Industrial Park, is being developed by Killam Development, a Laredo, Texas-based firm. Colliers Senior Vice President and Principal Bob Feinberg and Senior Vice President and Principal Tom Jones are leading the brokerage effort, holding the exclusive for leasing and land sales at the site.

"We just feel that Santa Teresa is primed and ready for growth and expansion of the industrial base," Jones said in an interview on Aug. 27.

Industrial Real Estate Development at the Borderplex

Avila Industrial Park is situated at the northwest corner of Pete Domenici Highway and Strauss Road in Santa Teresa, approximately four miles north of the Santa Teresa Port of Entry. The site sits within a designated Foreign Trade Zone, a factor central to its market positioning as a hub for cross-border manufacturing, warehousing, and distribution activity along the U.S.–Mexico supply chain.

The park is being marketed with build-to-suit opportunities, land sales to owner-users and developers, and ground leases. Engineering design and development were scheduled to begin in the first quarter of 2026, with the first lots and build-to-suit opportunities available as part of the initial phase.

Market Context: Warehouse Real Estate Demand in the Borderplex

The Santa Teresa industrial submarket sits within the broader Borderplex region encompassing El Paso, Juárez, and Santa Teresa — an area that has drawn increased attention from corporate occupiers reconfiguring supply chains in response to nearshoring trends. The regional industrial vacancy rate stood at approximately 10.4% in 2025, above the historical average of around 8%, with the elevated rate attributed largely to new supply entering the market rather than a fundamental pullback in demand.

In the adjacent El Paso industrial market, warehouse and distribution vacancy reached 11.9% as of the third quarter of 2024, with year-to-date net absorption of approximately 7.26 million square feet. Weighted average asking rents for warehouse and distribution space in El Paso were running at $7.50 per square foot on a triple-net basis, with first-generation space commanding $8.75 to $9.75 per square foot NNN.

Nationally, industrial real estate vacancy reached 7.6% in the fourth quarter of 2025 and was projected to peak near 8% in 2026 before easing in 2027, with new supply outpacing demand as the primary driver rather than a collapse in leasing activity.

Colliers Brokers and Their Industrial Real Estate Track Record

Bob Feinberg brings 38 years of commercial real estate experience to the Avila assignment, with a background that spans retail real estate and industrial logistics. He and Jones were both instrumental in bringing Amazon's one-million-square-foot facility to Los Lunas, New Mexico, and both currently represent Rancho Del Rey Logistics Park, a 235-acre, 4-million-square-foot industrial park in El Paso, Texas.

Tom Jones has more than 23 years of commercial real estate experience, focusing on statewide and national brokerage as well as multi-market national tenant representation.

Also involved in the Colliers team is Eduardo "Lalo" Villeda, based in El Paso, who brings more than 23 years of experience in real estate procurement, development, and property management, including oversight of more than 11.5 million square feet of primarily industrial space across Mexico and the Borderplex region.

Industrial Park Positioned for Nearshoring and Cross-Border Activity

The Avila Industrial Park is structured to accommodate a range of occupier types, from owner-users pursuing individual parcels to large-scale tenants seeking build-to-suit warehouse space. Its Foreign Trade Zone designation and proximity to the Santa Teresa Port of Entry are expected to appeal to companies with cross-border manufacturing and distribution operations.

Killam Development's decision to bring the 272-acre site to market positions Avila to deliver new industrial supply into the Borderplex as regional vacancy approaches what analysts have characterized as a cyclical peak, with the expectation that absorption will strengthen as modern, well-located space becomes available to users expanding or relocating supply chain operations in the region.

The full Albuquerque Business First story on the Avila Industrial Park development is available at bizjournals.com; a subscription may be required to access the complete article.