Marcus & Millichap is pleased to present the opportunity to acquire the property located at 1202 Main Avenue in Laredo, Texas, leased to Frank Ropa Usada. The subject property consists of approximately 27,179 square feet of warehouse space and is situated on 0.89 acres of land. The two-building asset features a clear height ranging from 11’ to 14’, four dock-high doors (including two accessible via platform), and three-phase heavy power. Located in Laredo’s Downtown Historic District, the corner lot property is situated within a mile of two international ports of entry, including Juárez–Lincoln International Bridge (also known as Laredo International Bridge 2) which feeds directly into Interstate 35. Occupied on a month-to-month term, this sale creates an owner-user or lease-up opportunity upon closing. Thanks to a low tax assessment, holding costs will be relatively low for buyers with redevelopment plans.
Laredo is a relatively small market, containing 46.5 million square feet of industrial space. At the midway point of 2024, the vacancy rate climbed to 4.8 percent as deliveries outpaced positive net absorption, representing 180 basis points lower than the national average. Among comparable properties up to 50,000 square feet, the vacancy rate actually dropped 40 basis points in Q2 to just 1.6 percent. Despite availability remaining relatively tight, annual rent growth across Laredo slowed from 4.5 percent to 2.7 percent in Q2, slipping to the lowest increase since Q2 2013. The average asking rent stood at about $8.80 per square foot during this time. With 2.8 million square feet of industrial space under construction, the inventory is set to expand by 6.0 percent. However, all of the new supply in Laredo is concentrated in properties over 50,000 square feet (CoStar).
Located on the U.S.-Mexico border, Laredo has a long history as the center of trade between the two countries. Laredo became the first official port of entry on the border in 1851 and today is the leading port in the nation among more than 450 airports, seaports, and border crossings, handling $320 billion in trade in 2023. Area colleges and universities deepen the advantages for companies, providing thousands of students equipped with the skills to fill in-demand jobs each year. After experiencing a significant decline during the pandemic in 2020, metro Laredo’s population stabilized, rising to 269,000 in 2023 (Texas Economic Development Corporation, Laredo Economic Development Corporation). In recent years, Laredo has been the top beneficiary of the ongoing nearshoring movement in which domestic companies have shifted production from China to Mexico in the wake up rising tariffs and the Chinese lockdowns that took place during the pandemic. In early 2023, Mexico surpassed China as America’s top importer, providing a windfall for ports of entry primarily along the Texas-Mexico border.
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: ZAF0490126)
