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News release

San Diego, CA

Murphy Development Breaks Ground on Final Class A Industrial Building in the Siempre Viva Business Park in Otay Mesa, California

JLL to handle leasing at 79,050 square foot industrial Spec building at 8500 Kerns Street


SAN DIEGO, CALIF., May 15, 2018 – Murphy Development is nearing completion of its 2.1-million square-foot Siempre Viva Business Park (SVBP) in 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," stated Irwin.  "Since the start of 2015, we have seen the average asking rent for Otay Mesa industrial climb by 47%.  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 (BFTP).  The park will consist of 1,000,000 SF 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 2nd 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.  The building will be delivered 6 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.  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.

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.

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.  Located less than ½ mile from the I-15 freeway in the geographic center of San Diego, Scripps Ranch Technology Park offers the perfect location for development.  SRTP is in an unparalleled setting with many natural amenities.  Murphy plans to build up to 650,000 square feet of buildings at SRTP.

About Murphy Development

San Diego-based Murphy Development Company (MDC) has master planned and developed more than 10 million square feet of multi-phase corporate industrial and technology parks in San Diego. MDC acquires land and develops best-in-class corporate parks with the goal of leasing buildings – or completing build-to-suits for sale or lease – to Fortune 500 companies. Murphy Development is currently marketing 31 acres at the Scripps Ranch Technology Park and 65 acres of land in Otay Mesa within its Brown Field Technology Park, Siempre Viva Business Park, and The Campus at San Diego Business Park.  Plans for these projects include more than 2 million square feet of corporate headquarters, office and industrial facilities. For information, visit www.MurphyDev.com.

About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with nearly 300 corporate offices, operations in over 80 countries and a global workforce of 83,500 as of March 31, 2018. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit ir.jll.com.