Marcus & Millichap is pleased to present the opportunity to acquire the property located at 2152 West Interstate 20 in Odessa, Texas. The subject property consists of approximately 21,102 square feet of flex warehouse space and is situated on 10.13 acres of land. The three-building asset features a five-ton overhead crane, a paint booth, a clear height of 18’, 11 grade-level doors, and one dock-high ramp. Additionally, the office space covers 7,800 square feet along with a 12,480-square-foot covered canopy for additional storage. Equipped with concrete equipment pads, the property is ideal for industrial outdoor storage use with a building coverage ratio of just 5 percent. With a highly visible frontage along Interstate 20 Service Road North, the property can also be accessed directly from South County Road West.
The Odessa market contains 13.5 million square feet of industrial space heavily concentrated in the oil and gas industry. At the midway point in 2024, the vacancy rate stood at 8.1 percent. While availability is relatively high, the Odessa market is one of the few in the nation that has trended lower since the beginning of 2023, falling by 90 basis points. Despite the fall in vacancies, annual rent growth slowed to 1.3 percent in Q2, representing the lowest level since Q4 2011. At about $13.20, the average asking price declined slightly during the second quarter. With 86,000 square feet under construction, representing less than 1 percent, vacancies will effectively be determined by demand for the foreseeable future (CoStar). Through the first six months of the year, oil prices rose by 13.8 percent to about 81.50 per barrel. If oil prices continue to stay resilient, industrial demand should hold up well in Odessa.
Located in West Texas, the Midland-Odessa metro is considered to be an energy capital as the Permian Basin is one of the biggest oil fields in the world and is home to some of the largest petroleum-producing companies. The metro consists of Martin, Midland, and Ector counties. The public sector is a top job provider, but the private sector is the economic driving force. The two largest cities are Midland with over 140,000 residents and Odessa with roughly 123,000 residents.
As the largest single source of oil and gas deposits in the United States, Odessa has long been known for its rich resources. New businesses have come to the city that have helped diversify the economy as well as reinforce the quality-of-life standards. Odessa proudly boasts world-class cultural and recreational facilities as well as healthcare and transportation often associated with larger cities. It also serves as the crucial midpoint between Fort Worth and El Paso. Lucrative financial incentives, site selection, logistics, qualified workforce, easy access to foreign markets, and low cost-of-living make it easy to do business (odessatex.com). Major industries include: medical, energy, distribution, manufacturing, and technology.
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: ZAF0060116)
