Marcus & Millichap is pleased to present the opportunity to acquire the property located at 8301 Braniff Street in Houston, Texas. The subject property consists of approximately 15,140 square feet of warehouse space and is situated on 0.51 acres of land. The asset features 10 grade-level doors for shipping and receiving. As a value-add opportunity, the fully occupied multi-tenant property will allow investors to hedge income while gross leases are converted into triple-net leases. Situated just off Monroe Boulevard, the property has proximate access to the William P. Hobby Airport.
The subject property is situated within South Highway 35, a massive submarket containing 43.2 million square feet of 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, 5.1 million square feet of industrial space was delivered in South Highway 35. While sizable, this represents only about a 13 percent expansion in inventory. Thanks to an annual net absorption of 1.14 million square feet, the vacancy rate has dropped 160 basis points to 3.1 percent by the end of the first quarter. As a result, the rate of annual rent growth jumped to 5.5 percent during this time, representing a fresh 20- year high. At 6.7 percent, the average market cap rate has remained in record low territory below 7 percent since 2015 (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. © 2022 Marcus & Millichap. All rights reserved. (Activity ID: ZAD0060521)
