Marcus & Millichap is pleased to present the opportunity to acquire the property located at 4023 West University Drive in McKinney, Texas, anchored by Nemo Q, Inc. The subject property consists of approximately 11,877 square feet of mixed-use space and is situated on 0.8 acres of land. The two-building masonry-constructed asset features 3,801 square feet of warehouse space, 3,000 square feet of retail space, and 5,076 square feet of office space. Additionally, the property has a clear height of 11.5’-13’, 18 parking spaces, and a relatively new TPO roof installed in 2021. Located along highly sought-after University Drive, the property is exposed to an average traffic count of 35,719 vehicles a day and has access to 183,685 residents within a five-mile radius (CoStar). Long-time tenant Nemo Q, Inc., a provider of virtual queue management systems, recently renewed its current triple-net lease that runs through June 2027 with 5.0 percent annual escalations. Boss Frog Tattoos LLC occupies the remaining 3,000 square feet and is signed to a similar lease that runs through September 2026.
The subject property is positioned within the Allen/McKinney submarket containing 20.4 million square feet of industrial space plus 2 million square feet under construction at the start of 2024. Last year, the vacancy rate rose by 330 basis points to 5.8 percent thanks to new supply outpacing robust demand by about 690,000 square feet. While the growth rate of asking rents slowed down last year by 310 basis points, the 7.9 percent annual increase more than doubled that of the Consumer Price Index. Following industrial, retail space in Allen/McKinney accounts for 19.4 million square feet plus another 810,000 square feet underway in early 2024. Vacancies experienced only a small uptick to 4.0 percent last year, allowing rent growth to remain relatively stable at 5.5 percent. Office space takes up 12 million square feet in Allen/McKinney along with just over 490,000 square feet in the pipeline. Bucking the national trend, vacancies held steady at about 10.4 percent over the last year in addition to the 2.6 percent rent growth (CoStar).
The Dallas-Fort Worth metroplex is the fourth-most populous metro in the nation, with an aggregate of more than 7.7 million residents. It is composed of 13 counties stretching nearly 10,000 square miles. The city of Dallas houses 1.3 million people, followed by Fort Worth with 919 thousand residents. Strong job growth continually draws new residents to the region. To accommodate the additional traffic, the region’s transportation network is evolving. Traffic flow is improved as freeways are expanded and miles are being added to tollways and turnpikes. The growth of the transportation network is vital to supporting commuters to the metro’s numerous corporations and growing industries. Dallas/Fort Worth’s population growth in recent years ranks among the highest in the U.S. for a major metro. The Metroplex is home to 24 Fortune 500 companies and many regional headquarters, drawing workers and residents. The area’s extensive network of rail and highways, along with the International Inland Port of Dallas, ensure its status as a distribution hub.
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: ZAF0060162)
