Dalfen Industrial has acquired Otay South Logistics Center, a 66,243 square foot industrial property fully occupied by Royal Flavor, a wholesale logistics company. The acquisition it the firm's second in the San Diego market in the last two days.

Located near the 905 freeway and the Otay Mesa Port of Entry, the property was built in 2000 and features 24-foot clear heights, a 128-foot truck court and 14 dock-high doors. The property is located in an active industrial hub near Fedex, Amazon, Kraft, Honeywell, Bose, Panasonic and Costco. The location near the port is a significant benefit, allowing easy access to move goods across the border and access to labor, according to the firm. The property is also located near Tijuana Airport, 20 miles from the Port of San Diego and 25 miles from the San Diego International Airport.

Overall, San Diego's industrial market is experiencing rapid growth. According to research from Marcus & Millichap, industrial rents in the market have increased 4.7% to $16.80 per square foot. Rents have grown consistently each quarter since the start of the pandemic. Limited supply is driving the rent growth, according to the report. In the fourth quarter, San Diego had a 4.4% industrial vacancy rate, down 70 basis points from the previous quarter. The vacancy rate has been on a downward trend since 2019, when the rate peaked at nearly 6%.