Marcus & Millichap is pleased to present the opportunity to acquire the property located at 1025 Montrose Street in Beaumont, Texas. The subject property consists of approximately 20,850 square feet of shallow-bay warehouse space and is situated on 1.13 acres of land. The three-building asset features 19 suites, each with a drive-in door, two-phase power, and metal construction. Located along U.S. Route 90/College Street, the property has proximity to downtown Beaumont and easy access to Houston and Port Arthur. With 77 percent occupancy on month-to-month terms on modified gross leases at a below-market average of $4.80 per square foot, this sale offers investors a significant value-add opportunity.
The subject property is primely located within the relatively small Beaumont submarket, containing 4.7 million square feet of industrial space, largely concentrated in the oil refining industry. In Q1 2025, the 12-month rolling net absorption contracted by about -169,000 square feet. Along with the net delivery of 28,000 square feet during that time, the vacancy rate increased 420 basis points to 10.7 percent from Q1 2024 to Q1 2025. However, among comparable properties under 50,000 square feet, the vacancy rate stood at just 4.3 percent in the first quarter. Nonetheless, the increase in availability across Beaumont helped to decelerate annual rent growth to an 11-year low of 2.3 percent in Q1, pushing the average market rent to $9.30 per square foot (CoStar). Despite the slowdown in demand and rent growth, the near-term and long-term fundamentals in Beaumont are well within tact. Unlike most submarkets, Beaumont had only one industrial property under construction during Q2, providing some future protection against rising vacancy rates. More importantly, oil prices, which have held up relatively well under current economic conditions, are poised to rise as the dollar’s exchange rate with other major currencies comes under pressure.
Beaumont is located in Jefferson County along the Neches River and serves as the county seat. The city is part of the Beaumont-Port Arthur metropolitan statistical area and located 85 miles east of Houston. Beaumont’s economy is heavily dependent upon oil refining and is home to the nation’s third-largest oil refinery, owned and operated by ExxonMobil Corporation. The oil industry in Beaumont is supported by the deep-water Port of Beaumont, which ranks as the fourth busiest port in the United States according to the American Association of Port Authorities. The port is also the busiest military port in the world for processing United States military equipment. Beaumont is home to Lamar University, a public university that is part of the Texas State University System. The university has an estimated enrollment of 17,000 students.
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: ZAG0040077)
