Marcus & Millichap is pleased to present the opportunity to acquire the property located at 8700 Chancellor Row in Dallas, Texas. The subject property consists of approximately 13,500 square feet of warehouse space and is situated on 0.76 acres of land. The single-tenant asset features masonry construction, two dock-high doors, and a fully fenced-in lot that allows for secure equipment storage and parking. Recent renovations in 2022 and 2023 include a repaved parking lot, a new office build-out, installation of LED lighting throughout office and warehouse space, exterior painting, and a white box interior finish. With close proximity to major thoroughfares, including Stemmons Freeway (Interstate 35 East) and John West Carpenter Freeway (State Highways 183 and 114), the property sits within a 15-minute drive from both Downtown Dallas and Dallas Love Field Airport. For sale as vacant, the property can be acquired for owner use at $159 per square foot, which is about 11 percent less than comparable properties.
The subject property is situated within the West Brookhollow submarket, one of Dallas’ original and largest industrial hubs containing 43.3 million square feet of space. Three-quarters of the submarket’s inventory was developed prior to 1980, and the tenant base is dominated by manufacturers, suppliers, and local distributors. West Brookhollow enjoyed another strong year in 2022 as demand for industrial space outpaced new supply on a square footage basis by a factor of 19.5 to 1. Like most markets, demand has slowed at the start of 2023, and although the vacancy rate rose to 5.3 percent in Q1, available supply remains tight. As a result, market rents were still up 11.3 percent year-over-year in Q1, almost twice the increase of the Consumer Price Index. Largely due to a lack of available land, construction activity amounts to just 57,000 square feet, meaning that rent growth and vacancies will essentially be unimpeded by new supply for the foreseeable future. Thanks to strong rent growth in recent years, the average market sale price per square foot is up 35 percent since the end of 2020. With projections pointing higher, this sale offers an opportunity for a safe exit (CoStar).
The Dallas-Fort Worth metroplex is the fourth-most populous metro in the nation, with an aggregate of more than 7.7 million residents. It is composed of 13 counties stretching nearly 10,000 square miles. The city of Dallas houses 1.3 million people, followed by Fort Worth with 919 thousand residents. Strong job growth continually draws new residents to the region. To accommodate the additional traffic, the region’s transportation network is evolving. Traffic flow is improved as freeways are expanded and miles are being added to tollways and turnpikes. The growth of the transportation network is vital to supporting commuters to the metro’s numerous corporations and growing industries. Dallas/Fort Worth’s population growth in recent years ranks among the highest in the U.S. for a major metro. The Metroplex is home to 24 Fortune 500 companies and many regional headquarters, drawing workers and residents. The area’s extensive network of rail and highways, along with the International Inland Port of Dallas, ensure its status as a distribution hub.
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: ZAE0060243)
