4140 South 87th East Avenue
- 4140 South 87th East Avenue, Tulsa, OK 74145
- Property Type:
- Single Tenant
- Cap Rate:
- 9.50% cap
- Square Feet:
- 6,540 sqft
- Lot Size:
- 1.74 acres
- Price Per Square Foot:
- Year Built:
- Single-Tenant Industrial Warehouse on Nearly 2 Acres
- Fenced-In Lot, 4 Drive-In Doors and 20’ Clear Height
- New Six-Year NNN Lease with Three 3-Year Options
- Tenant in Place Since 2010; Seven Offices Across Five States
- Easily Accessible to I-44, Highway 169 and Broken Arrow Expressway
- Strong Submarket with 4.5% Vacancy Rate
Marcus & Millichap is pleased to present the opportunity to acquire the property located at 4140 South 87th East Avenue in Tulsa, Oklahoma, leased to Midwest Drywall Company, Inc. The subject property consists of approximately 6,540 square feet of warehouse space and is situated on 1.74 acres of land. The asset features metal construction, four grade-level doors, and a clear height of 20’. Major thoroughfares, including Interstate 44, Highway 169 (U.S. Highway 64), and Broken Arrow Expressway, sit in close proximity to the property. Midwest Drywall Company has maintained tenancy since 2010 and recently renewed for five years on a triple-net lease, with three 3-year options. Celebrating its 50th year in business, Midwest Drywall Company provides wall and ceiling subcontracting work for commercial real estate developments. The company maintains seven operations across five states.
The subject property is situated within South Central Tulsa, a submarket containing 13.7 million square feet of industrial space. While logistics properties dominate the inventory, making up 46 percent of space, specialized industrial space has a strong presence in the submarket. Over the last year, the vacancy rate in South Central Tulsa has dropped by 230 basis points to 4.3 percent through the second quarter of 2022. The drop in vacancies was largely due to an annual net absorption of about 277,000 square feet in Q2, representing the highest level since Q2 2015 and nearly 600 percent higher than the 10-year annual average. With demand spiking, industrial rents increased by a record 8.0 percent annually during the second quarter. Rents in South Central Tulsa now average just over $6.50 per square foot, offering landlords a slight 5.7 percent premium compared to the overall Tulsa market. Given that there is only 9,000 square feet of industrial space under construction, rent growth and vacancies will essentially be unaffected by new supply for the foreseeable future.
Tulsa’s metro area is home to nearly one million residents. As the second largest city in Oklahoma, Tulsa maintains a population of about 413,000 (U.S. Census Bureau). While the rise of telecommunications and aerospace manufacturing has bolstered economic growth in the new millennium, Tulsa’s economy remains anchored by the oil industry. Nearly 1,000 energy-related companies are established in metro Tulsa, employing about 25,000 people and contributing $9.7 billion annually to the local economy. Thanks to a cost of living that is 14 percent lower than the national average, nearly 67 percent of residents are homeowners (Marcus & Millichap, Tulsa Chamber of Commerce).