Single-Tenant Value-Add Office Warehouse
- Out-of-State Buyer
- Square Feet:
- 24,460 sqft
- Lot Size:
- 1 Acres
- Year Built:
- 24,460-Square-Foot Tilt-Wall Office Warehouse with Two-Story Functionality
- One-Acre Lot Offers Over 70 Parking Spaces with Multiple Access Points
- Strategic Value-Add Investment Situated in Strong Rent Growth and Low Vacancy Submarket
- Features One Dock-High Doors, Gated Security, and Full Roof Replacement in 2019
- Diverse Market Tenant Base and Robust Lease Demand Reduces Backfilling Risk
Marcus & Millichap is pleased to present the opportunity to acquire the property located at 4130 Dayco Street in Houston, Texas. The subject property consists of approximately 24,460 square feet of flex space and is situated on 1.0 acre of land. The single-tenant asset features two stories, 70 parking spaces, one dock-high door, gated security, and a clear height ranging from 13’ to 21’. In 2019, the roof was fully replaced with pitched metal surfacing. Located just off of 43rd Street, the property has proximate access to major thoroughfares including State Highway 290, Sam Houston Tollway, and Interstate 10. For sale as vacant, buyers have an owner-user or lease-up investment opportunity.
The subject property is located in Northwest Inner Loop, Houston’s second-largest industrial submarket containing 64.4 million square feet of space. Northwest Inner Loop is home to a diverse cluster of manufacturing tenants involved in oil and gas, aerospace, food supply, heavy machinery, construction supplies, and industrial equipment. Given its urban location and access to three highways, the submarket has a strong presence of distribution warehouses facilitating last-mile deliveries. During Q3 2023, the vacancy rate in Northwest Inner Loop increased to 5.2 percent as net absorption dipped into negative territory for its third consecutive quarter. Despite the slowdown in demand, market rent growth remained near historic highs, rising 4.8 percent year-over-year in Q3. Largely due to the scarcity of available land, there were no industrial properties under construction during this time (CoStar). The lack of deliveries in Northwest Inner Loop means that rent growth and vacancies will be unaffected by new supply for the foreseeable future. Going into the last quarter of the year, oil prices have continued to rebound, up over 40 percent since their March lows. The boost in energy prices is improving activity in the oil and gas industry, which will benefit many tenants in Northwest Inner Loop.
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.