Marcus & Millichap is pleased to present the opportunity to acquire the property located at 355 County Road 142 in Alvin, Texas. The subject property consists of approximately 52,170 square feet of warehouse space and is situated on 4.93 acres of land. The asset features a clear height of 20’, four grade-level doors, and three-phase power. While the property is ideal for shipping and distribution, it can also facilitate tenants with high power needs. With excess land, the property can also sustain future development or be used as a stabilized truck yard. Located in close proximity to major state highways, the property is primely situated within the South Highway 35 Submarket.
Containing 43.7 million square feet of industrial space and stretching from Interstate 610 South Loop to the Gulf of Mexico, South Highway 35 is one of Houston’s largest submarkets geographically and by volume. The submarket is anchored by a strong presence of oil and natural gas companies, particularly near the Gulf. With prices of oil and natural gas products hitting historic high levels in 2022, annual net absorption has nearly doubled the five-year average for four consecutive quarters, finishing Q3 at 1.1 million square feet. As a result, vacancy rates dropped within 30 basis points of the lowest level on record to 2.4 percent during Q3. Sitting 340 basis points lower than the metro average, South Highway 35 maintains the lowest vacancy rate among all of Houston’s 29 submarkets. Tight supply helped push market rent growth up to 5.1 percent year-over-year in Q3. Market rents now average about $7.80 per square foot, offering tenants a slight discount compared to the overall market. While a record 1.6 million square feet of industrial space is currently under construction, the new supply represents just 3.7 percent of inventory (CoStar). With oil and natural gas prices poised to benefit from global inflation, this new development should be easily absorbed as vacancies usually fall when prices rise.
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: ZAD0040402)
