Marcus & Millichap is pleased to present the opportunity to acquire the property located at 8124 Sprague Road in Odessa, Texas. The subject property consists of approximately 16,835 square feet of space and is situated on 2.67 acres of land. The industrial asset features 10 total grade-level doors, clear heights of 16’-18’, covered parking, and around 3,200 square feet of office space. Most of the lot is fenced-in with gate access to Sprague Road, allowing the property to accommodate outdoor storage space easily. For sale as vacant, buyers can use the property for owner use or as a lease-up investment opportunity. Strategically positioned in the Odessa industrial market with frontage along Texas 338 Loop, the property sits just 10 minutes from Interstate 20.
Odessa is a relatively small market, containing 14.2 million square feet of industrial space. During the third quarter of 2024, the vacancy rate increased by 70 basis points to 8.8 percent as net absorption dropped into negative territory in back-to-back quarters. While the vacancy rate did not return to its pre-pandemic lows, vacancies have remained relatively stable since the start of 2021. Annual rent growth has continued to slow under ample availability, slipping to a decade’s low of 0.9 percent. Going into Q4, only 66,800 square feet were under construction, representing 0.5 percent of current inventory levels. Given the pipeline, rent growth and vacancies will largely be unaffected by new supply for the foreseeable future (CoStar). While oil prices are set to close flat on the year, the future outlook for oil prices and thus industrial real estate in Odessa remain bright. Growing concerns over the national debt along with the increase in global oil trading using foreign currencies instead of dollars are forming a springboard for higher oil prices.
Located in West Texas, the Midland-Odessa metro is considered to be an energy capital as the Permian Basin is one of the biggest oil fields in the world and is home to some of the largest petroleum-producing companies. The metro consists of Martin, Midland, and Ector counties. The public sector is a top job provider, but the private sector is the economic driving force. The two largest cities are Midland with over 140,000 residents and Odessa with roughly 123,000 residents.
As the largest single source of oil and gas deposits in the United States, Odessa has long been known for its rich resources. New businesses have come to the city that have helped diversify the economy as well as reinforce the quality-of-life standards. Odessa proudly boasts world-class cultural and recreational facilities as well as healthcare and transportation often associated with larger cities. It also serves as the crucial midpoint between Fort Worth and El Paso. Lucrative financial incentives, site selection, logistics, qualified workforce, easy access to foreign markets, and low cost-of-living make it easy to do business (odessatex.com). Major industries include: medical, energy, distribution, manufacturing, and technology.
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. © 2024 Marcus & Millichap. All rights reserved. (Activity ID: ZAF0060761)
