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News release

SAN DIEGO, CA

Cross-Border Collaboration Provides Advantage for JLL’s Growing Industrial Client Base

Thirty warehouse distribution spaces available at two Clarion Partners Properties in Otay Mesa


SAN DIEGO, August 18, 2014 – Currently marketing one of its largest industrial assignments to date on behalf of Clarion Partners, the San Diego office of JLL is growing its industrial team locally and working both sides of the U.S.-Mexican border to generate strong interest for two large, Otay Mesa industrial properties. Additionally, a bi-national JLL team is working alongside Baja California governor Francisco "Kiko" Vega and his team to increase industrial investment in Baja California.

“Our marketing strategy for this assignment from Clarion Partners demonstrates the importance of cross-border collaboration in the regional industrial market,” said Jay Alexander, Managing Director at JLL. “In San Diego, we know our owners, landlords and tenants aren’t coming from just one side of the border, so marketing these properties in just one county or country would senselessly limit the pool of tenants our client needs to reach.”

The two Clarion properties include the International Business Center and Siempre Viva Business Park, located in the Otay Mesa submarket of San Diego. The properties are located one-quarter mile from each other and comprise approximately 620,000 square feet and 474,000 square feet, respectively. The 30 available spaces between the two properties range from 1,500 square feet to 140,000 square feet.

“The Otay Mesa submarket continues to steadily improve and will benefit from the new 905 freeway extension and the cross-border airport terminal,” said Ryan Grove, JLL Senior Vice President. “Knowing that some users who want to be in Otay Mesa may specifically target this region due to its proximity to the border, we’re leveraging our global resources and knowledge to identify and target a larger portfolio of users for the International Business Center and Siempre Viva Business Park warehouse distribution facilities.”

Working to market these properties alongside the San Diego industrial team from JLL, comprised of Alexander, Grove and recent hire Joe Anderson, Senior Associate, is a colleague from the Mexico JLL office.

Close collaboration with JLL’s Vince Roche, Senior Vice President, who leads both the Tijuana office and the entire Northwest Mexico region of Mexico, also helped to secure the assignment. Roche was already working with Clarion Partners to market Centinela Industrial Park, consisting of approximately 1,700 acres in Mexicali.

Additionally, Roche is working in unison with Michael Condon Sr. from JLL's Los Angeles offices to address larger projects for the Centinela Industrial Park. Their team is working alongside Baja California governor Francisco "Kiko" Vega and his team, who are hoping to establish significant industrial investment.

While Roche is part of JLL’s Mexico team and primarily focused on the Mexico side of numerous industrial corridors, he has completed multiple transactions in the U.S. Otay Mesa market and recently completed a 425,000-square-foot, $23 million lease at IGS Otay on the Mexico side for U.S.-based Flextronics LTD and Mexico-based Industrial Global Solutions de Mexico (IGS). 

"Mexico, especially along the border, has increasingly become the near-shoring solution for numerous Fortune 200 corporations,” said Roche. “Tijuana is currently the best example, logging the most absorption."

Overall, San Diego’s industrial market is gaining strength. The San Diego industrial submarket of Otay Mesa, which is closely linked with Baja Mexico and, to a lesser extent, Imperial County, is no exception. During the first half of 2014, Otay closely followed Miramar for highest absorption, with 257,360 square feet, and remains very attractive for its low lease rates relative to much of the rest of the county and its diversity of space available.

Noting that the CaliBaja Bi-National Mega Region includes both sides of the entire California/Baja, Mexico border, Mega Region Initiative Executive Director Christina Anne Luhn, PhD. noted that, “Unless we act as a mega region and implement collaborative systems to grow the regional economy, we will be left behind by larger municipalities and regions that can.”

About JLL
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual fee revenue of $4.0 billion and gross revenue of $4.5 billion, JLL has more than 200 corporate offices, operates in 75 countries and has a global workforce of approximately 53,000.  On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.0 billion square feet, or 280.0 million square meters, and completed $99.0 billion in sales, acquisitions and finance transactions in 2013. Its investment management business, LaSalle Investment Management, has $50.0 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.​