Marcus & Millichap is pleased to present the opportunity to acquire the property located at 5605 East Loop 250 in Midland, Texas, leased to Roadkill Diesel Performance. The subject property consists of approximately 5,000 square feet of warehouse space and is situated on 1.51 acres. Delivered in 2022, the two-building asset features metal construction, a 16’ clear height, two grade-level doors, and two RV hookups. With frontage along Loop 250, the property has easy access to Interstate 20 which runs through the heart of the Permian Basin. The tenant is signed to a triple-net lease that runs through mid-August 2027 at $14.04 per square foot. The property provides the flexibility to lease the buildings separately in the future, catering to a wider range of potential tenants.
Midland is a relatively small market with 19.9 million square feet of industrial space heavily concentrated in the oil and gas industry. In 2023, the Midland market bucked the national trend, experiencing a 160-basis-point drop in vacancies to 4.7 percent. However, this year, availability has reversed course as oil and gas service providers consolidate. The increase in vacancies has put additional pressure on asking rents with the annual growth rate slowing to just 0.6 percent. Despite the decline, the long-term outlook for oil and gas prices remains highly positive. America’s current economic environment and government fiscal situation call for more assistance from the Federal Reserve which historically stimulates oil prices. Any decline in property values in Midland should be viewed as temporary and a great buying opportunity to capitalize on future appreciation.
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.
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. © 2024 Marcus & Millichap. All rights reserved. (Activity ID: ZAF0060610)
