Marcus & Millichap is pleased to present the opportunity to acquire the property located at 2605 South Interstate 35 Freeway in San Marcos, Texas, anchored by Endless Paint & Dent Removal. The subject property consists of approximately 12,000 square feet of shallow bay industrial space and is situated on 0.92 acres of land. The three-building asset features ten suites, each with a grade-level door, a clear height of 14’, metal construction and roofing, and 22 parking spaces. With frontage along the service road for Interstate 35, the property has high visibility in the Hays County submarket with direct access to Downtown Austin (36 miles) and Downtown San Antonio (46 miles). At an average of $13.60 per square foot, the property is fully occupied with nine of the 10 leases running through March and April 2026.
Hays County is a mid-sized submarket, containing 20.6 million square feet of industrial space. In the 12 months through Q2, net absorption remained comfortably in positive absorption at 1.5 million square feet. With 12-month net deliveries nearly matching demand at 1.6 million square feet, the vacancy rate has remained relatively stable over the last year, dropping 280 basis points to 11.9 percent in Q2 2025. Due to the high availability, annual rent growth declined by -2.0 percent in Q2, marking the lowest level since Q1 2010. With 1.9 million square feet under construction at the midway point of 2025, representing 9.2 percent of inventory, supply will impact vacancies and rents for the foreseeable future (CoStar).
With a population of over 2.47 million residents, the population of Metro Austin has grown significantly in recent decades along with economic growth. Known as the home of South by Southwest, the Austin-Round Rock metro covers about 4,225 square miles and consists of five counties in central Texas: Travis, Williamson, Hays, Caldwell, and Bastrop. Austin’s population of nearly 980,000 people makes Travis the most populous county in the metro. Employment gains in the tech sector have contributed significantly to the metro’s recent population and median household income growth. Tesla’s newly constructed Gigafactory is expected to generate at least 5,000 jobs, supporting future relocations and increased demand for housing. The government is a significant driver in the local economy as Austin is the state capital and home to an IRS regional processing center as well as military bases. Located within a border state, the metro benefits significantly from international trade agreements with Mexico.
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: ZAG0160004)
