Marcus & Millichap is pleased to present the opportunity to acquire the property located at 6995 Industrial Avenue in El Paso, Texas. The subject property consists of approximately 12,592 square feet of space and is situated on 0.53 acres of land. The single-tenant asset features a clear height of 14’, 12 parking spaces, two grade-level doors, and metal construction. For sale as vacant, the property can be acquired for owner use or as a lease-up investment. As of December 2023, this sale offered the only industrial property over 10,000 square feet within a five-mile radius of the site. Situated in an Opportunity Zone, buyers can reduce capital gains taxes through redeveloping the property. With a prime location in the East industrial submarket, the property is just one block away from Interstate 10 and a short drive to the Cielo Vista Mall.
The East submarket is a major industrial corridor, containing 45 million square feet of space. At 61 percent, East contains the majority of the industrial space in the El Paso market. Bucking the national trend, net absorption in the East submarket remained strong in 2023, rising past 1.4 million square feet with one month to go in the year. However, new deliveries posted a record high of 3.9 million square feet during that time, causing the vacancy rate to jump from 3.0 percent in 2022 to 8.3 percent. The rise in vacancies has contributed to a slowdown in annual rent growth but at 5.2 percent, market rents were still in line with the 10-year average in Q4. About 4.9 million square feet of industrial space were under construction toward the end of 2023, representing nearly 11 percent of new inventory (CoStar).
Thanks to its proximity to the Mexican border and ports of entry, the East submarket serves as a logistics hub for international trade. This allows the East to benefit from the ongoing nearshoring movement in which domestic companies have shifted production from China to Mexico. In early 2023, Mexico surpassed China as America’s top importer, making Texas the biggest beneficiary with cross-border imports increasing by 24 percent in the previous year (Freight Waves). As imports continue to rise, industrial activity will also pick up along border cities, helping to support property values.
The El Paso metro is located at the westernmost corner of Texas, bordering New Mexico and the state of Chihuahua in Mexico. It is composed of El Paso and Hudspeth counties. Access to Mexico plays a major role in the local economy. The city of El Paso, when combined with Las Cruces, New Mexico, and Ciudad Juarez in Mexico, is sometimes referred to as the international metropolitan area of Paso del Norte and has one of the largest bilingual and binational labor pools in the Western United States.
As the largest metro along the Texas-Mexico border and the sixth-largest city in Texas, El Paso is a top 20 percent U.S. performing economy and represents one of the largest manufacturing centers in North America. Recognized as globally competitive, the region boasts the largest bilingual and bi-cultural workforce in the Western Hemisphere (elpasotexas.gov). El Paso was a finalist for the 2018 National League of Cities “All-America City,” 2018 Best of Texas Awards, and WalletHub’s #1 Best Run City in Texas in 2017. In 2018 alone, El Paso County added 4,200 jobs. Major employers include Pacific Union Financial, UPS, Veritas Management Group, and iFly.
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: ZAE0490103)
