Marcus & Millichap is pleased to present the opportunity to acquire the property located at 13001 Elaine Road in Houston, Texas. The subject property consists of approximately 11,680 square feet of warehouse space and is situated on 3.4 acres of land. The single-tenant asset features a clear height of 20’, three grade-level doors, metal construction, three-phase power, and 1,100 square feet of office space. Equipped with a three-ton bridge crane at a 14-foot hook height, the vacant property is suitable for a variety of uses, including shipping and distribution. With a building coverage ratio of 8 percent, the property can easily accommodate industrial outdoor storage space that could generate additional income by being leased. Located in close proximity to State Highway 288 and Sam Houston Tollway, the property is primely situated in the South Highway 35 submarket.
South Highway 35 is a large submarket supported by oil and gas companies with 49.4 million square feet of industrial space. In 2023, nearly 1.8 million square feet of space was absorbed on net, topping the highest level since 2004. Despite historically strong demand, net deliveries hit a record 3 million square feet, causing the vacancy rate to jump by 230 basis points to 5.5 percent last year. Despite the rising availability, asking rent growth hit a 20-year high of 5.1 percent. At the start of 2024, there were 3.2 million square feet of industrial space under construction, representing 6.5 percent of inventory. Like most markets, the pipeline in South Highway 35 is dominated by large warehouses with 84 percent of deliveries last year concentrated in properties 100,000 square feet and larger. Given the lack of new supply of industrial properties under 100,000 square feet, vacancies for these properties were lower than the submarket average at 4.4 percent (CoStar). Despite economic headwinds, oil prices have been resilient and are poised to gain momentum in 2024 if inflation remains relatively high. As a result, submarkets such as South Highway 35 should outperform with higher demand.
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. © 2023 Marcus & Millichap. All rights reserved. (Activity ID: ZAE0040586)
