Marcus & Millichap is pleased to present the opportunity to acquire the industrial park located at 395 County Road 202 in Kyle, Texas. The subject property consists of approximately 95,000 square feet of shallow-bay warehouse space and is situated on 10.0 acres of land. Delivered from 2017 to 2021, the multi-tenant asset features 24 suites, 80 grade-level doors , metal construction, three-phase power, and gated access. The property’s 24 suites range from 2,500 to 6,000 square feet. With a building coverage ratio of 22 percent, the asset contains an ample amount of industrial outdoor storage space (IOS) that borders the property. Located just off East Farm to Market Road 150, the property has proximity to Interstate 35 and Airport Highway 21. The fully occupied property generates income at an average rent of $12.06 per square foot. With most of the triple-net leases expiring within the next two years, this sale offers investors a low-maintenance core plus opportunity.
The subject property is located within the midsize Hays County submarket, containing 20.2 million square feet of industrial space. In 2023, Hays County welcomed a record amount of speculative development at a time when net absorption experienced a significant slowdown, pushing the vacancy rate up from 4.0 percent to a record high of 16.7 percent. In 2024, net absorption began to catch up to net deliveries, bringing the vacancy rate down to 13.7 percent at the start of 2025. Nonetheless, comparable properties under 10,000 square feet have maintained a relatively low vacancy rate in recent years, finishing 2024 at 4.4 percent. Under the weight of high vacancies, annual rent growth contracted into negative territory for the first time since 2010 at -0.9 percent, putting more focus on small industrial properties (CoStar).
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. With a population of over 2.47 million residents, the population of metro Austin has grown significantly in recent decades along with economic growth. Austin’s population of nearly 980,000 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: ZAF0160299)
