South County’s industrial boom just keeps on fueling San Diego’s commercial real estate market, with Sudberry Properties the latest developer to press on with new projects.
The latest move by Sudberry, based in Sorrento Valley, comes with the completion of a 137,500-square-foot mixed-use warehouse with some retail space in the company’s Otay River Business Park in Chula Vista.
The building is fully leased to a mix of tenants, including SuperStar Car Wash, Jamba Juice, Menuderia Guadalajara, Knockaround Sunglasses, Colonna’s Shipyard, Inc., Luv Sola wood flowers, Shore Total Office, and Boochcraft hard kombucha.
Sudberry has started construction on the second phase of the business park that will include two buildings totaling 205,335 square feet, with a 97,230-square-foot building at 2995 Faivre St. and a 108,205-square-foot building at 2855 Faivre St.
Leasing is underway on the newest buildings even as they are under construction, with spaces ranging from 25,000 square feet to 108,000 square feet. Michael Mossmer of Voit Real Estate Services is handing leasing.
More Coming
Despite an overall in the overall economy, “The leasing market is still strong. We’re still getting a lot of interest,” said Colton Sudberry, CEO and president of Sudberry Properties.
President
Sudberry Properties
Helping to buttress demand for South County industrial property is the so-called nearshoring by companies that manufactured products abroad prior to the COVID pandemic, but have since moved their manufacturing to Mexico, requiring storage space north of the border.
That’s eased somewhat, but Sudberry said nearshoring is still a factor.
CBRE reported that countywide, 496,432 square feet of new industrial space was delivered in the first quarter of 2023 with 2.6 million square feet under development, much of that in South County.
“Active tenant requirements of all sizes remain robust at over 4.5 million square feet over the next 24 months countywide,” CBRE reported. “While many of these tenants paused their plans due to COVID-19, most of them have returned to exploring the market, have sent out proposals and are in the intermediate stages of their search. While not all the current tenants in the market will transact in the short term, these levels provide a barometer for leasing activity in quarters to follow.”
Still to come from Sudberry is the third phase of the Otay River Business Park with construction set to start next year are two industrial buildings of about 110,000-square-feet each, Sudberry said.
“It will complete the existing park,” Sudberry said. “We have another 10 acres of land that we’re staring the process on and adding a couple of more buildings, there’s a potential fourth phase of this.”
“The projects will give tenants superior flex industrial space within a beautifully landscaped environment with restaurants, services and shopping within walking distance,” Sudberry said. “Both dock-high and grade-level doors are available to meet all loading requirements.”
Working with Sudberry on the Otay River Business Park are TFW Construction with corporate headquarters in Del Mar, SCA Architects based in Sabre Springs, Lightfoot Planning Group of Carlsbad, Ridge Landscape of Irvine, and Southland Paving based in Escondido.
Built on the site of a former strawberry field and concrete plant, the 50-acre business park is bordered by Broadway on the west, Main Street on the north, Fourth Avenue on the east, and the Otay Valley Regional Park on the south less than a mile from Interstate 5.
Sudberry Properties
Founded: 1979
CEO/President: Colton Sudberry
Headquarters: Sorrento Valley
Business: Real Estate Developer
Employees: 67
Website: www.sudprop.com
Contact: 858-546-3000
Notable: Sudberry Properties has developed approximately 12.6 million square feet of commercial and residential property with a market value exceeding $2.5 billion.
