Elevation Land Company and Crow Holdings Capital have completed the first phase of the Otay Business Park, delivering 612,240 square feet of warehouse space in four buildings on a 119-acre site at the U.S.-Mexico border — making it one of the largest industrial construction projects in Southern California.
“It’s the largest ground-up industrial development going on in San Diego County and it’s one of the largest in Southern California right now by square footage,” said Brig Black, Elevation Land Company founder and principal.
The first phase includes four buildings ranging from 79,760 to 233,880 square feet, with 32-foot clear heights, more than 400 skylights, ESFR sprinkler systems, and extra electrical capacity. Construction costs were approximately $50 million, not including land and environmental mitigation expenses.
At full build-out, Otay Business Park will provide 1.8 million square feet of industrial space in up to nine buildings. A second phase will add approximately 650,000 square feet in three buildings, with a potential third phase of 400,000 square feet.
The project’s location near the new Otay Mesa East border crossing — expected to open in late 2027 — is a key draw for tenants. Black said the warehouses are attracting interest due to their proximity to the border, extensive trailer parking, and access to labor on both sides of the border.
“We have the flexibility to lease the buildings, we can sell the buildings, we can build-to-suit or we can sell lots,” Black said. “People are feeling they have a better handle on the tariff issues with Mexico. There’s just more certainty about what that landscape looks like.”
CBRE reported that the overall vacancy rate for industrial property in San Diego dropped to 6.5% in the first quarter of 2026, with absorption rising to 132,000 square feet — what CBRE called “a vast improvement” over the previous quarter.
“The supply side has bottomed out now,” Black said. “It’s going to be an environment where we are looking for the overall economy and the markets to continue to improve.”
The buildings were designed with features that allow them to serve as manufacturing hubs, not just storage. “Users want a lot of power, more than they ever have in the past,” Black noted, citing the extra electrical capacity built into each facility.
Dempsey Construction served as general contractor, with Ware Malcomb as architect. Elevation Land Company, founded in 2022, focuses on industrial, life science, and vacant land acquisitions in California and the Rocky Mountain states.
Sources: San Diego Business Journal, SDBJ
