The brand new $100 million Landmark at Otay 50-acre industrial park, beneath development since February, has its first tenant — a enterprise that makes a speciality of Mexican imports.
RL Jones Customhouse Brokers, which has a presence alongside all the U.S.-Mexico border, will lease 153,000 sq. toes of the complicated for roughly $8 million for 5 years. RL Jones is positioned subsequent to all main U.S. Southern border entries in Texas, New Mexico, Arizona and California.
Landmark at Otay appears to reap the benefits of speedy industrialization close to the Otay Mesa Port of Entry on account of tax adjustments made in 2019 to profit American and Canadian companies importing from Mexico over Asia.
The Landmark challenge is a 50/50 three way partnership from two Southern California corporations — Metropolis of Trade-based Majestic Realty Co. and San Diego-based Sunroad Enterprises. It has 4 buildings with two which might be nearing completion by the tip of the 12 months and the opposite two by the start of 2023.
It will have probably been one of many largest initiatives in Otay Mesa if not for Amazon. The Seattle retailer, which recently opened a 3.4-million-square-foot achievement middle, has begun development on a 702,535-square-foot sorting facility close by and it additionally bought a 63-acre site throughout the road in September.
In contrast to Amazon, the brand new Landmark at Otay lease is particularly tied to the border whereas the retailer is believed to be principally making the most of cheaper land.
RJ Jones already leases 81,213 sq. toes in Otay Mesa on Siempre Viva Highway and has workplace house in Tijuana close to the Otay Mesa crossing.
The corporate, in enterprise since 1938, says it’s positioned to facilitate commerce with Tijuana’s rising maquiladora business. It additionally stated it gives to seek the advice of on Part 321, which permits items in Mexico costing lower than $800 to cross the U.S. border to clients duty-free.
Adjustments in tax legal guidelines to make commerce amongst North American international locations extra favorable had been included within the United States-Mexico-Canada Settlement, nicknamed “NAFTA 2.0,” signed by the Trump administration. The method of outsourcing nearer known as “nearshoring” and has taken on new significance with provide shortages at many of the nation’s seaports.
Cross-border commerce between San Diego and Tijuana can be anticipated to additional enhance with a $137.2 million remodel of the Otay Mesa crossing that may develop its capability from six lanes to 12 and makes different enhancements to modernize.
Manufacturing is rising throughout the border to fulfill demand. The Tijuana Financial Growth Corp. stated greater than 60,000 individuals are employed in electronics manufacturing; 14,600 in automotive manufacturing; and 42,000 in medical gadget manufacturing. It stated the minimum wage in Mexico is $88.36 pesos a day, or $4.29. That compares to $14 an hour minimal wage in San Diego, or $112 in a typical 8-hour day.
Colliers’ senior vice presidents Chris Holder and Mark Lewkowitz, with affiliate Will Holder, represented Majestic Realty Co. and Sunroad Enterprises within the lease deal. Regan Tully of Cushman Wakefield represented RL Jones.