Marcus & Millichap is pleased to present the opportunity to acquire the property located at 6909 Grand Boulevard in Houston, Texas occupied by the owner HHS, Inc. Upon the sale of the property, HHS, Inc. plans to execute a one-year leaseback. The subject property consists of approximately 6,722 square feet of flex space and is situated on 0.4 acres of land. The single-tenant asset features 86 percent of office space, masonry construction, and two grade-level doors. Thanks to the property’s corner lot position which is bordered by a drainage ditch, the property is protected from flooding and was undamaged during Hurricane Harvey in 2017. Located near the intersection of major thoroughfares State Highway 288 (South Freeway) and U.S. 90 Alternate (Old Spanish Trail), the property sits less than a mile from the Texas Medical Center.
The subject property is positioned within South Inner Loop, a medium-sized submarket containing 12.7 million square feet of industrial space. In recent years, the vacancy rate has steadily fallen and stood at just 2.7 percent in Q1 2023, sitting 290 basis points lower than the overall Houston market. Tight supply has helped push market rents to historically high levels over the last year, finishing Q1 up 5.0 percent year-over-year. Despite the economic slowdown, industrial demand in South Inner Loop remains robust with 12-month net absorption hitting nearly 298,000 square feet during Q1. This compares to the three-year average of about 10,000 square feet. Despite the strong fundamentals, development has remained low largely due to a lack of available land. Over the last decade, the inventory has actually contracted by about 5.0 percent as demolition activity has outpaced new construction. As a result, rents and vacancies in the South Inner Loop submarket will go unimpeded 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. © 2023 Marcus & Millichap. All rights reserved. (Activity ID: ZAE0040226)
