Region Seen as the Most Exciting and Promising Area for Growth
Colliers International commercial real estate brokerage in its first quarter report on industrial development noted that 5.7 million square feet of industrial buildings were under construction countywide, the biggest of which is a 3.3 million square-foot distribution center for Amazon in Otay Mesa, due to be finished in the second quarter.
Amazon also has a lease out for 850,000 square feet of land near the distribution center for employee parking and is in escrow on an additional 60 acres of land in Otay Mesa, said Mark Lewkowitz, a senior vice president of Colliers International.
“With Amazon locating in Otay Mesa, it seems for the 15 years I’ve been working there, there’s more legitimacy to the market. It seems like the capital and institutional investors are much more comfortable and bullish on Otay Mesa being a desirable location,” Lewkowitz said.
Although hardly due entirely to Amazon, “South County is becoming much more sought after,” Lewkowitz said. “I’d say no one wanted to meet with me 15 years ago and now all of a sudden I’m popular.”
A move by some manufacturers to bring their businesses closer to home by opening plants in Mexico instead of more remote locations – so-called near-shoring, also is driving up demand for warehouse space in Otay Mesa.
“Our Tijuana market brokers have been busier than ever finding new locations for manufacturing,” Lewkowitz said. “That type of move is obviously a huge move, bringing a manufacturing plant from China to Tijuana, but we believe it will benefit the Otay market.”