Logistics service provider R.L. Jones Customhouse Brokers leased nearly 241,000 square feet at a warehouse building owned by developers Majestic Realty and Sunroad Enterprises in the Otay Mesa neighborhood of southern San Diego County, as it expanded existing operations in the area.
Brokers said it was among the largest industrial leasings by square footage in the San Diego region during the past decade. It also was emblematic of a nationwide push to increase space required by industries, including e-commerce and shipping, to accommodate rising demand for fast deliveries of goods and services.
Industrial demand is likely to ramp up further in coming years as companies look to on-shore or re-shore operations to U.S. locations, including those such as Otay Mesa that are within key trade corridors along the U.S.-Mexico border. For its potential to help raise the profile of southern San Diego County as an international trade hub, a panel of local judges selected the R.L. Jones transaction for a CoStar Impact Award for lease of the year in San Diego.
About the Deal: R.L. Jones Customhouse Brokers leased 240,975 square feet at the Landmark at Otay industrial campus, in a building completed in 2023 at 1610 Landmark Road.
What the Judges Said: "The ability to keep an expanding company with significant growth within California and more importantly within the San Diego market is highly impactful," said Amy McNamara, principal at brokerage Urban Property Group. Christopher Sohaey, managing principal at investment firm MMC Real Estate Holdings, said he was impressed by "the sheer magnitude" of R.L. Jones' new regional headquarters, "given that cross-border commerce is such a hot regional topic in South County, San Diego."
They Made It Happen: The tenant was represented by Regan Tully of brokerage Cushman & Wakefield. The landlords were represented by Mark Lewkowitz, Chris Holder and Will Holder of brokerage Colliers.