Nov 5 2015
Murphy Development is nearing build-out of its 2.1-million-square-foot Siempre Viva Business Park on Otay Mesa with the recent groundbreaking of the 121,970-square-foot Building 18. The development team includes architect Gene Cipparone, K&S Engineering and Lusardi Construction.
Murphy Development has broken ground on a 122,000-square-foot industrial building in San Diego's Otay Mesa. The building, located in the Siempre Viva Business Park, is the first spec industrial building to break ground in Otay Mesa since 2007. Siempre Viva Business Park is adjacent to the U.S./ Mexico border and close to Tijuana International Airport. (Graphic: Business Wire)
The concrete tilt-up Building 18, located at 2600 Melksee Street, will feature a 32-foot clear height, 8,000 amps of 277/480 volt power, manufacturing sewer and water capacity, concrete truck courts, wide column spacing and high dock door ratios designed for distribution users.
As soon as a lease is executed on Building 18, Murphy plans to start construction on the final Class A industrial building at Siempre Viva, a 79,000-square-foot spec building at 8500 Kerns Street.
“With Otay Mesa’s industrial vacancy standing at 6.4 percent – the lowest in the 20 years that CBRE has been tracking the market – and no inventory of Class A buildings between 50,000 and 200,000 square feet, we are confident it’s time for spec product at Siempre Viva,” said Andy Irwin, senior vice president and director of marketing for Murphy Development, which has planned or developed more than 10 million square feet of industrial buildings in San Diego.
Murphy Development’s newest project on Otay Mesa is Brown Field Technology Park (BFTP), which is planned for 1 million square feet of corporate industrial space. Grading and the storm drain system have been completed and the balance of site improvements will be completed in early 2016. The 50-acre BFTP can deliver freestanding buildings between 75,000 and 300,000 square feet within a year.
Irwin said Otay Mesa is enjoying a renaissance, spurred on by several major projects. The new Cross Boder Xpress Terminal (CBX), scheduled for completion this year, will connect Otay Mesa directly to Tijuana International Airport.
Construction is scheduled to start in 2016 on a major renovation and expansion on 330-acres of the Brown Field Airport. The transformation into Metro Airpark, will involve new aviation, retail, hospitality, commercial and industrial uses.
“Lower occupancy costs, traffic improvements, a strong labor pool from South County and Baja California, and available utilities are all driving the growth of Otay Mesa,” said Irwin.
The completion of SR 905 (The Otay Mesa Freeway) and SR 125 tollway has created easy access to the rest of the county. Construction is under way on the SR 11 connector to the future Otay Mesa East Port of Entry project, which will reduce southbound border wait times for commercial traffic to 20 minutes, according to Caltrans.
The San Ysidro Port of Entry, the busiest land border crossing in the Western Hemisphere, is undergoing a $741 million renovation. The first two phases, including a new southbound pedestrian crossing, a northbound vehicular inspection facility, and an administrative and pedestrian building, are complete. The third phase, which is completely funded, will include southbound and northbound inspection facilities.
The city of San Diego adopted the new Otay Mesa Community Plan Update in April 2014. It provides a roadmap for Otay Mesa’s long-term growth and development. The Central Village Specific Plan Area, a component of the update that is currently being processed through the city, includes 4,500 multifamily residential units, new schools and parks and over 140,000 square feet of retail shopping.