Marcus & Millichap is pleased to present the opportunity to acquire the property located at 101 North Highway 146 in Texas City, Texas. Currently occupied by the owner, the property will be vacant upon sale. The subject property consists of approximately 36,500 square feet of warehouse space and is situated on 3.47 acres of land. The single-tenant asset features clear heights of 24’ and 26’ and contains eight grade-level doors varying in size. Equipped with three cranes (one 5-ton crane and two 7.5 tons cranes), the property is conducive for manufacturing use.
Sitting just north of Interstate 45 via State Highway 146, the property resides within the East-Southeast Far submarket, containing a massive 106 million square feet of industrial space. East-Southeast Far is anchored by the Port of Houston, which ranks first in the nation in total waterborne tonnage and supports 3.2 million jobs. Net absorption has slowed down in recent quarters but clocked in at a robust 1.4 million square feet during Q2 2023. However, net deliveries continued to exceed absorption, pushing the vacancy rate up to 5.9 percent at the halfway point in 2023.
With regards to comparable properties under 50,000 square feet, the vacancy rate continued to trend lower as new deliveries remained muted, falling to 4.8 percent in Q2. Annual rent growth overall in East-Southeast Far settled at 4.7 percent during this time, sitting 110 basis points above the five-year average. With 7.1 million square feet of industrial space under construction (equaled to 6.7 percent of inventory), new deliveries are expected to set a new record this year. Given that only 1.8 percent of the new construction activity is concentrated in comparable properties, new supply will have a minimum direct impact on small industrial properties 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. © 2022 Marcus & Millichap. All rights reserved. (Activity ID: ZAE0040351)
