Marcus & Millichap is pleased to present the opportunity to acquire the property located at 5121 South Acres Drive in Houston, Texas. The subject property consists of approximately 8,300 square feet of warehouse space and is situated on 2.71 acres of land. The single-tenant asset features a clear height of 14’ with a 16’ eave height, two grade-level doors, and three-phase power. With a building coverage ratio of 7 percent, the vacant property can be acquired for outdoor storage space and can easily facilitate shipping and distribution. Primely located in the South Highway 35 submarket, the property has proximity to both State Highway 288 and William P. Hobby International Airport via Airport Boulevard.
South Highway 35 is a massive submarket containing 50.1 million square feet of industrial space. Wholesale trade tenants serving the oil and gas industry make up a large portion of the tenant base in South Highway 35. Over the last decade, the population growth in Suburban South Houston has boosted demand for e-commerce and distribution facilities. During this time, 8.6 million square feet of industrial space was delivered on net in South Highway 35, including an annual record of 3 million square feet in 2023. While net absorption rose at a 20-year high of 1.8 million square feet last year, supply has outpaced demand, sending the vacancy rate to the highest level since 2005 at 6.5 percent during Q1 2024. Rising vacancies helped slow rent growth to 3.3 percent annually during this time. At 7.9 percent, the average market cap rate topped the highest level in over a decade to start 2024 (CoStar).
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. © 2023 Marcus & Millichap. All rights reserved. (Activity ID: ZAE0040598)
