609 Leago Street
- 609 Leago Street, Houston, TX 77091
- Property Type:
- Single Tenant
- Cap Rate:
- 8.00% cap
- Square Feet:
- 11,000 sqft
- Lot Size:
- 0.52 Acres
- Price Per Square Foot:
- Year Built:
- 11,000-Square-Foot Flex Warehouse Featuring Ample Office Space and Masonry Construction
- Short-Term Triple-Net Sale-Leaseback Offers Attractive Lease-Up Opportunity
- Functional Flex Asset: Two-Floor Flexibility, 18’ Clear Height, and Two Grade-Level Doors
- Strong Market Tenant Base Providing Wide Range of Manufacturing, Logistics, and Oil Industries
- Rent Growth Projected to Reach 6% in 2023 Outpacing the 3.2% Annualized Average (CoStar)
Marcus & Millichap is pleased to present the opportunity to acquire the property located at 609 Leago Street in Houston, Texas, occupied by the owner, AAA Lift Trucks. The subject property consists of approximately 11,000 square feet of flex space and is situated on 0.52 acres of land. This single-tenant asset features metal and masonry construction, ample office space, two floors, a clear height of 18’, and two grade-level doors. Upon close of escrow, AAA Lift Trucks plans to execute a one-year triple-net leaseback, creating an attractive lease-up opportunity. Located in the Northwest Near submarket, the property has proximate access to major highways, including Interstates 45 and 610.
Northwest Near is a medium-sized submarket in Houston, containing 20.5 million square feet of industrial space. Similar to the subject property, the bulk of the inventory is comprised of smaller warehouses developed prior to 1980. The tenant base is largely anchored by small businesses that cover a wide range of industries, such as manufacturing, logistics, and oil and gas. At the conclusion of 2022, market rents in Northwest Near were up 5.3 percent on the year, outpacing the overall market average by 70 basis points. After experiencing a roller coaster ride, the vacancy rate in the submarket finished the year essentially unchanged at 3.9 percent, compared to the market average of 5.5 percent. With only about 240,000 square feet of industrial space under construction, representing just 1 percent of the inventory, new supply in Northwest Near will have a minimal impact on rent growth and vacancies for the foreseeable future (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.