Marcus & Millichap is pleased to present the opportunity to acquire the property located at 12236 Cutten Road in Houston, Texas, occupied by the current owner, Madero Dairy Systems Incorporated. The subject property consists of approximately 15,200 square feet of flex space and is situated on 1.52 acres of land. The single-tenant asset features masonry construction, 2,892 square feet of office space, a clear height of 25’, and two dock-high doors set in a truck well. With ample land, the property allows for an expansion up to 10,000 square feet. Upon sale of the property, Madero Dairy Systems plans to execute a five-year leaseback on triple-net terms with 3.0 percent annual rent escalations. With operations in six countries and the territory of Puerto Rico, Madero Dairy Systems is a leading designer and manufacturer of technologically advanced dairy equipment and solutions (Madero).
Located just off State Highway 249, the property is situated within the North Freeway/Tomball Parkway submarket, containing a large inventory of 40.8 million square feet of industrial space. Since the start of 2021, the submarket has experienced a significant reduction in vacancies as the rate dropped from 11.9 percent to 4.3 percent during the first quarter of 2023. During this time, annual market rent growth raced to a record high of 5.9 percent in Q2 2022, but has since fallen to 3.0 percent. The recent boom in demand has attracted new development in the area with 1.8 million square feet of industry space under construction. While this represents a sizable 4.4 percent expansion to current inventory, 72 percent of the pipeline is concentrated in larger properties of at least 100,000 square feet (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: ZAE0040008)
