Marcus & Millichap is pleased to present the opportunity to acquire the property located at 7028 Gessner Road in Houston, Texas, occupied by US Med-Equip (USME). The subject property consists of approximately 30,606 square feet of Class A flex space and is situated on 3.87 acres of land. The asset features more than 100 parking spaces and ample industrial outdoor storage space (IOS), including 1,052 square feet of covered space included in the rent. Accessible by two dock-high doors and two grade-level doors set on elevated ramps, the building has a clear height of 18’. Delivered in 2015, the tilt-wall construction was built raised above ground level to provide protection against a severe flooding scenario.
Upon the sale of the property, the current landlord (former CEO of USME) plans to execute a two-year triple-net leaseback with G Squared Properties Inc. as the leaseholder (the tenant will continue to occupy the space). Investors have an opportunity to acquire a sale-leaseback that renews into a three-year term with the rental rate increasing annually based on the consumer price index. USME provides high-quality medical equipment to over 3,750 hospitals across the nation. The company operates over 90 locations, including the subject property that serves as the headquarters. For the 10th time, USME was selected by Inc. 5000 as one of the fastest-growing private companies in the U.S.
Located near the intersection of U.S. Route 290 and Sam Houston Tollway (Beltway 8), the subject property sits within the Highway 290/Tomball Parkway submarket, containing a sizeable 34.6 million square feet of industrial space. Anchored by the oil & gas, energy, and healthcare industries, the submarket has enjoyed robust population growth in recent years. At the midway point of 2023, the vacancy rate rose to 11.2 percent as 1.9 million square feet of new industrial space hit the market, expanding the inventory by nearly 6 percent. Despite the recent rise in vacancies, annual rent growth was slightly above the market average at 4.5 percent. With only about 63,000 square feet of industrial space under construction going into the back half of 2023, new supply will have a minimum impact on vacancies and rent growth 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: ZAE0040347)
