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Otay Mesa’s industrial market is seeing explosive growth. The market has grown into a dynamic market with multiple demand drivers, and it is growing. BKM Capital Partners is very bullish in general on the San Diego industrial market, and sees incredible potential in Otay Mesa. The firm recently acquired a 703,215-square-foot multi-tenant industrial asset in the market to gain a strong presence in the area. The property is 97% leased, but BKM plans to roll the leases to take advantage of the rapidly rising rental rates.

“This is something of critical mass in Otay Mesa, and I think that is important. There is 30 million square feet South County, so this 700,000-square-foot property gives us a good foothold in the market,” Brett Turner, director of acquisitions at BKM Capital Partners, tells GlobeSt.com. It allows us to move our weight around.” This particular asset has tenants ranging from 3,200 square feet to 150,000 square feet, so it is right in BKM’s wheelhouse. Rents are 24% below market, so our game plan is to roll tenants over and moving tenants up to market. The market has seen explosive growth, especially lately. This isn’t a huge capital play for us. It is really about managing the rent roll, which is what we do best.”

Kelsi Maree Borland

Kelsi Borland is a freelance writer and editor living whose work has appeared in such publications as Travel + Leisure, Angeleno and Riviera Orange County.

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