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 from Sprague Road, allowing the property to easily accommodate outdoor storage space. 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 12.9 million square feet of industrial space. Thanks to the resiliency in oil prices in 2023, the oil-rich Odessa market has bucked the national trend as vacancy rates have remained relatively steady through the end of the year. For Q4 2023, the vacancy rate sat at 9.5 percent, down only 20 basis points year-over-year. Despite availability tightening, market rent growth continues to slow, up just 3.4 percent annually for 2023. However, with only about 63,000 square feet under construction (representing less than 1.0 percent of current inventory), market rents and vacancies should largely be unaffected by new supply for the foreseeable future (CoStar).
Although crude oil prices have pulled back in recent months, market fundamentals suggest prices will be elevated in the near future. Given the recent oil cuts by Saudi Arabia and Russia (the top two oil exporting nations), oil prices have more room to move up as global oil demand is projected to outpace supply. Adding to the upward pressures on oil prices is the rebuilding of oil stocks from the Strategic Petroleum Reserve (which previously fell to 1983 levels). Even with the potential threat of recession, the near-term outlook for oil looks bright, which is good news for the Odessa industrial market.
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. © 2023 Marcus & Millichap. All rights reserved. (Activity ID: ZAE0060161)
