Marcus & Millichap is pleased to present the opportunity to acquire the property located at 3808 Knapp Road in Pearland, Texas. The subject property consists of approximately 12,319 square feet of warehouse space and is situated on 3.01 acres of land. The two-building asset features 3,232 square feet of office space, a clear height of 14’, 41 parking spaces, three drive-in doors, metal construction and roofing, and three-phase heavy power with 208 amps. With a building coverage ratio of 9 percent, the property has ample space for industrial outdoor storage. For sale as vacant, the property can be acquired for owner use or as a lease-up investment opportunity. Located just off State Highway 35, the property has proximate access to the Texas 8 Beltway (Sam Houston Tollway).
The subject property is located in South Highway 35, a massive submarket containing 52.1 million square feet of industrial space. Wholesale trade tenants serving the oil and gas industry make up a large portion of the tenant base in South Highway 35. Over the last decade, the population growth in South Highway 35 has boosted demand for e-commerce and distribution facilities. During this time, nearly 10 million square feet of industrial space was delivered on net in South Highway 35, including an annual record of 2.9 million square feet in 2023 that is set to be surpassed in 2024. At the midway point of 2024, the vacancy rate retreated 100 basis points to 6.1 percent. Among comparable properties up to 50,000 square feet, the vacancy rate fell back to just 4.4 percent. Despite availability tightening during Q2, annual rent growth across South Highway 35 continued to slow to 2.1 percent (CoStar). While South Highway 35 will likely continue to experience volatility in the short run, the submarket’s heavy exposure to the oil and gas industry makes the area a solid long-term opportunity to take advantage of a likely boom in commodities this decade.
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: ZAF0040327)
