Marcus & Millichap is pleased to present the opportunity to acquire the property located at 237 Benelli Drive in Hutto, Texas, leased to Blue Diamond M.E.P & Company. The subject property consists of approximately 12,720 square feet of warehouse space and is situated on 1.5 acres of land. Delivered in 2021, the single-tenant asset features a clear height of 24’, four grade-level doors, three-phase power, metal construction, two HVAC units, wet sprinklers, and 20 parking spaces. Located along U.S. Route 79 in a newly developed industrial pocket, the property is conveniently situated between State Highway 130 and Interstate 35. Leased through January 2028 at $14.25 per square foot with annual rent escalations of 3.51 percent, the tenant has two five-year renewal options. In business for more than 30 years, Blue Diamond M.E.P is a family-owned company that offers full-service mechanical, electrical, and plumbing contracting services.
The subject property is positioned within Round Rock, a relatively small industrial submarket with 9.9 million square feet of space. In 2024, Round Rock experienced a record amount of new supply, with 1.2 million square feet in net deliveries. Demand nearly matched supply with nearly 1.1 million square feet of net absorption. The vacancy rate in 2024 ticked up only 50 basis points to 12.0 percent. The level of availability put pressure on annual rent growth, which decelerated from 6.5 percent in 2023 to -0.9 percent last year, representing the first annual contraction since 2010. In 2025, net deliveries will quickly set a new high with the completion of the 2.8 million-square-foot Samsung semiconductor plant in Q1 (CoStar).
With a population of over 2.35 million residents, the population of Metro Austin has grown significantly in recent decades along with economic growth. Known as the home of South by Southwest, the Austin-Round Rock metro covers about 4,225 square miles and consists of five counties in central Texas: Travis, Williamson, Hays, Caldwell, and Bastrop. Austin’s population of 964,177 people makes Travis the most populous county in the metro. Employment gains in the tech sector have contributed significantly to the metro’s recent population and median household income growth. Tesla’s newly constructed Gigafactory is expected to generate at least 5,000 jobs, supporting future relocations and increased demand for housing. The government is a significant driver in the local economy as Austin is the state capital and home to an IRS regional processing center as well as military bases. Located within a border state, the metro benefits significantly from international trade agreements with Mexico.
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. © 2025 Marcus & Millichap. All rights reserved. (Activity ID: ZAF0160285)
