- 10108 West County Road 160, Midland, TX 79706
- Property Type:
- Single Tenant
- Cap Rate:
- 8.31% cap
- Square Feet:
- 12,155 sqft
- Lot Size:
- 6.41 Acres
- Price Per Square Foot:
- Year Built:
- 12,155-Square-Foot Industrial Asset Situated on 6.41 Acres
- Metal Construction Featuring 24’ Clear Height, Three Half-Ton Jib Cranes, Five Drive-Through Bays, and Newly Renovated Office Space
- Fenced-in Yard with Ample Outside Storage Space and Outdoor RV/Man Camp Hookups
- New Five-Year Lease with Pate Trucking, a Premier Trucking and Tank Service Company
- Centrally Located Between Midland and Odessa, Just Off of Farm to Market 1788 for Access to Interstate 20
- In-Demand Market with Vacancies Down 140 Bps Year-to-Date
Marcus & Millichap is pleased to present the opportunity to acquire the property located at 10108 West County Road 160 in Midland, Texas, leased to Pate Trucking. The subject property consists of approximately 12,155 square feet of industrial space and is situated on 6.41 acres of land. The asset features metal construction, five drive-through bays, three half-ton jib cranes, and a clear height of 24’. The property includes a fenced-in yard with two access gates, ample outside storage space, and offers hookups for outdoor RVs or man camps. Recent renovations to the 3,455-square-foot office space include updates to the break room, conference room, and bathrooms. Located just off of Farm to Market 1788, the subject property is conveniently positioned less than 15 miles from both downtown Midland and Odessa.
Pate Trucking recently signed a five-year lease running through April 2028 with 2.0 percent annual rent escalations. The subject property acts as Pate’s newest of nine operating locations spanning the West Texas and New Mexico region. Since 1957, the family-owned trucking company has offered heavy-haul trucking and tank services for the oil industry. From vacuum trucks to blowdown tanks, Pate provides a variety of quality services backed by over six decades of experience.
Midland is a relatively small market, containing 17.2 million square feet of industrial space centered around the oil and natural gas industry. Unlike the national norm, the vacancy rate has steadily dropped in 2023, falling 140 basis points from the end of 2022 to 5.9 percent during Q2 2023. Despite supply tightening, annual rent growth slowed down to 3.7 percent during this time. However, with industrial construction activity representing less than 1 percent of inventory, there are essentially no supply-side pressures on rents and vacancies for the foreseeable future (CoStar). While oil and gas prices experienced a pull-back during the summer of 2022, the stars are aligning for a new cyclical bull market in both commodities. At the current pace, stockpiles of the Strategic Petroleum Reserve could be depleted by mid-2024. The persistence of high inflation and global energy shortages equates to a bright future for Midland, presenting a prime opportunity for industrial investors today.
Located in West Texas, the Midland-Odessa metro is considered to be an energy capital as the Permian Basin is one of the biggest oil fields in the world and is home to some of the largest petroleum-producing companies. The metro consists of Martin, Midland, and Ector counties. The public sector is a top job provider, but the private sector is the economic driving force. The two largest cities are Midland with over 140,000 residents and Odessa with roughly 123,000 residents.
Midland is the center of America’s oil and gas production. Petroleum production and all things in between are prevalent in the area, but Midland is making great efforts and success in diversifying into additional industries such as aerospace. Interstate 20 runs through Midland, making it easy to transport goods and raw materials throughout the country. Rated the No. 1 state for business by U.S. corporate executives, this is an excellent place to start or grow a business in Texas. (midlandtxedc.com). Major employers include: Halliburton, Hilliard, Legacy Reserves, Midland College, Midland Health, Patterson-UTI, Pioneer Natural Resources, Schlumberger, Weatherford, Baker Hughes, Chevron, ConocoPhillips, Bloomberg, and more.