I switched to file_put_contents() instead of fopen, fwrite, and fclose and it did the trick! Also simplified my file path.
<?php
$xml = new SimpleXMLElement('<xml/>');
$markers = get_posts('post_type=es_dealer&posts_per_page=-1');
$xml->addChild('markers');
foreach($markers as $i=>$marker) {
global $dealer_mb;
$meta = $dealer_mb->the_meta($marker->ID);
$name = get_the_title($marker->ID);
$lat = $meta['lat'];
$lng = $meta['long'];
$xml->markers->addChild('marker');
$xml->markers->marker[$i]->addAttribute('name', $name);
$xml->markers->marker[$i]->addAttribute('lat', $lat);
$xml->markers->marker[$i]->addAttribute('lng', $lng);
}
$file = 'testing.xml';
$current = $xml->asXML();
file_put_contents($file,$current);
?>