Kiernan Cos. Buys 10 Acres in Otay Mesa
- Aug 21, 2013
With declining vacancy likely for San Diego’s industrial market, the recent sale of a sizeable parcel in Otay Mesa border offers reasons for additional encouragement. Coronado-based Kiernan bought the parcel from MS Development Co. LLC. for $3.6 million. The deal was arranged on behalf of the seller by a CBRE Inc. team, while Kiernan was represented by Fischer & Co.
Located at 10138 Airway Road five blocks north of the U.S.-Mexico border, Airway Business Park is near State Route 11, a new road that officials are counting on to improve traffic flows through the border region.
According to research from Marcus & Millichap Real Estate Investment Services Inc., San Diego’s projected industrial vacancy rate by the end of the year is 9.4 percent. That is notably higher than above other West Coast port markets like Los Angeles (5.0 percent), Oakland (8.9 percent) and Seattle-Tacoma (5.1 percent), as well as the projected national average of 8.4 percent.
That said, a 9.4 percent vacancy rate at year’s end would represent a 70 basis-point improvement compared with 2012. San Diego ranks 17th in Marcus & Millichap’s National Industrial Index, four places ahead of its position in last year’s index.
Chart courtesy of Marcus & Millichap Real Estate Investment Services Inc. at marcusmillichap,com