A rending of the completed Siempre Viva Business Park Building 17 in Otay Mesa. | Courtesy Murphy Development

$12M Siempre Viva Groundbreaking Updates Otay Mesa

Carrie Rossenfeld Industrial

Murphy Development is nearing completion of its 2.1-million square-foot Siempre Viva Business Park (SVBP), an industrial park in San Diego’s Otay Mesa, with the recent groundbreaking of the 79,050-square-foot Building 17, located at 8500 Kerns Street. The development team includes architect Gene Cipparone, K&S Engineering, and Lusardi Construction as the general contractor.

The $11.9-million Building 17 will feature a 28-foot clear height, 2,000 amps of 277/480 volt power, manufacturing sewer and water capacity, ESFR sprinklers, concrete truck courts, wide column spacing, and high dock-door ratios designed for distribution users. Leading the leasing efforts are Andy Irwin and Joe Anderson of JLL.

The neighboring Building 18, the penultimate project at SVBP, was completed in late 2016. The 121,970-square-foot building, located at 2600 Melksee Street, is partially leased by Mainfreight USA.

“Otay Mesa is experiencing industrial vacancy rates at historical lows,” says Irwin. “Since the start of 2015, we have seen the average asking rent for Otay Mesa industrial climb by 47 percent. Very little development has occurred in the market, leaving a robust tenant pool with very few options.”

Murphy Development, which has planned or developed more than 10 million square feet of industrial buildings in San Diego, is also under way on its next class-A industrial park, the Brown Field Technology Park. The park will consist of 1 million square feet of new class-A industrial buildings. The company is currently in the process of installing utilities and completing the infrastructure on the site and will begin landscaping the site’s perimeter later this year. Murphy plans to deliver its first building in the project in the second quarter of 2019.

Also in Otay Mesa, Murphy Development plans to start construction in early 2019 on the third building at The Campus at San Diego Business Park, a 137,000-square-foot building with 32-feet clear height, high dock door count, manufacturing power and concrete truck courts within the secured campus. Delivery is planned for the building six months after construction commences.

The completion of SR 905 (the Otay Mesa Freeway) and SR 125 tollway has created easy access to the rest of the county, Murphy points out. 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 new port of entry and tolled approach roads are projected to be completed in 2020.

One of the catalysts for all of this development is the new Otay Mesa Community Plan Update, which the City of San Diego adopted 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.

In addition to Murphy Development’s Otay Mesa projects, plans are being processed for the company’s first building at its Scripps Ranch Technology Park (SRTP). The 164,000-square-foot building is slated for delivery in mid-2019 and is located less than one-half mile from the I-15 freeway in the geographic center of San Diego, which offers many natural amenities. Murphy plans to build up to 650,000 square feet of buildings at SRTP.