Marcus & Millichap is pleased to present the opportunity to acquire the property located at 17667 Telge Road (Building 7) in Cypress, Texas, leased to BriCCo Metal Finishing. The subject property consists of approximately 10,054 square feet of industrial space and is situated on 1.02 acres of land. Delivered in 2016, the single-tenant asset features a 28’ clear height, two grade-level doors, a ten-ton overhead crane, three-phase power with 400 amps and 480 volts, and 15 parking spaces. Located less than two miles from State Highway 99 (Grand Parkway) in the Telge Industrial Business Park, the property has easy access within metro Houston. BriCCo recently signed a new seven-year triple-net lease in April 2024 at $15.00 per square foot with a 2.0 percent escalation in year two and 3.38 percent annual increases starting year three. Since 1988, BriCCo has been a leading provider of metal coating services that help protect metal parts and equipment from harsh environmental elements.
The subject property is positioned in Northwest Highway 6, a mid-sized submarket containing 23.3 million square feet of industrial space. In the first quarter of 2024, the vacancy rate increased slightly to 12.4 percent but was significantly down 310 basis points from its decade’s high set in Q3 2023. Bucking the national trend, 12-month net absorption through Q1 reached a five-year high at 3.1 million square feet, causing the recent drop in vacancies. Despite the increase in industrial demand, annual rent growth in Northwest Highway 6 continued to slow to 2.0 percent in Q1. However, with only 173,000 square feet under construction (representing less than 1.0 percent of inventory), supply will essentially be a nonfactor on vacancies and rent growth for the foreseeable future (CoStar).
As the fifth most populous metro area in the U.S., Houston houses over seven million people in southeastern Texas. The market is composed of nine counties: Harris, Galveston, Brazoria, Fort Bend, Chambers, Montgomery, Austin, Liberty, and Waller. The Gulf of Mexico, which borders the metro to the southeast, provides access to markets around the world via the Port of Houston, making it a prime location for import/export. Houston’s economy has diversified in recent years, with the healthcare and technology sectors showing strong growth. As Houston’s population continues to grow, primarily to the northwest, many companies are expanding to the region to provide goods and services to the increasing population.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2024 Marcus & Millichap. All rights reserved. (Activity ID: ZAE0040441)
