Back to Listings
Houston, TX

9703 Plainfield Street

Address:
9703 Plainfield Street, Houston, TX 77036
Property Type:
Sale Leaseback
Price:
$1,720,500
NOI:
$101,743
Square Feet:
11,500 sqft
Lot Size:
0.37 acres
Price Per Square Foot:
$149.61
Year Built:
1980
Links
* By downloading the Marketing Package (Offering Memorandum) you hereby agree to the CONFIDENTIALITY AND BUYER REGISTRATION AGREEMENT.

Investment Highlights

Investment Highlights

Investment Highlights

  • Features 18’ Clear Height, Two-Story Office Space, and New Security Features
  • Fully Built-Out Office Space Coupled with a 5,520-Square-Foot Warehouse
  • Located in Southwest Houston/Houston Outer Loop Submarket with a Market Vacancy Rate of 5.30%
  • Average Submarket Rent of $10.40 with Annual Rental Growth Rate of 6.6% (CoStar)
  • Short-Term Triple-Net Sale-Leaseback, Minimizing Landlord Responsibility
  • Diverse Investment – Potential to Lease to Partial Retail Tenant at Below-Market Rents

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 9703 Plainfield Street in Houston, Texas, occupied by the current owner, Gulf Coast Flooring & Services. The subject property consists of approximately 11,500 square feet of flex space and is situated on 0.37 acres of land. The asset features 5,520 square feet of warehouse space, a clear height of 18’, a fully built-out two-story office space, and a new security system. Upon sale of the property, Gulf Coast Flooring & Services is expected to execute a six-month, triple-net lease, minimizing responsibilities for the new landlord. The short-term sale-leaseback will allow the new landlord to negotiate a long-term lease with the partial retail tenant at below-market rents. As a flex property, the asset offers prospective investors a diverse investment opportunity in the Southwest Outer Loop submarket.

With 14.9 million square feet of inventory, Southwest Outer Loop is considered one of Houston’s smaller industrial hubs. Over the last 12 months through May 2022, net absorption touched nearly 319,000 square feet, representing the highest year-over-year demand since late 2013. High demand in Southwest Outer Loop has pushed the vacancy rate down to 5.9 percent, which is comparable to the overall market. Since the beginning of 2021, market rent growth has surged from an annual rate of just 1.5 percent to a 20-year high of 6.6 percent. Market rents now average $10.40-per-squre-foot, offering investors a significant 26 percent premium to the overall Houston market. Currently, there is only a single 4,750-square-foot industrial building under construction in the Southwest Outer Loop submarket. As a result, rent growth and vacancies will largely be unaffected by new supply for the foreseeable future (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: ZAD0060470)