Wylie Multi-Tenant Industrial
- Sold at Asking Price with Multiple Offers
- Property Type:
- Multi Tenant
- Square Feet:
- 17,501 sqft
- Lot Size:
- 1.15 Acres
- Year Built:
- Two Buildings Totaling 17,501 Square Feet, Situated on 1.15 Acres
- Multi-Tenant Industrial Featuring 16’ Clear Height and Three-Phase Power
- Attractive Rental Increases to Combat Inflation, and Triple-Net Structure to Minimize Landlord Obligations
- Recent Renovations in 2021 Including: Roof, Office Finish out, and Exterior Paint
- Buildings Sit in Tight Barrier-to-Entry Submarket with Vacancy of 4.9%
- Submarket Rents Have Increased Over 11% in the Last Year Alone (Per CoStar)
- Subject Property Has Quick Access to Farm to Market 544 and State Highway 78
Marcus & Millichap is pleased to present the opportunity to acquire the property located at 22 Steel Road in Wylie, Texas. The subject property consists of two buildings containing approximately 17,501 square feet of warehouse space and is situated on 1.15 acres of land. The multi-tenant asset features eight drive-in doors, three-phase power, and a clear height of 16’. Renovations in 2021, as reported by seller, include a freshly painted exterior, new roof coating with a 20-year warranty, and remodeling of each office pod. Strategically located within the Plano submarket, the property has quick access to East Farm to Market Road 544 and South State Highway 78.
While Plano is often overlooked as an industrial hub in the Dallas-Fort Worth market, the submarket contains a sizeable 30 million square feet of industrial space. Home to many affluent suburbs, the Plano submarket maintains some of the highest rents in the Metroplex, averaging nearly $14 per square foot in the first quarter of 2023. Compared to the average rental rate in DFW, tenants in Plano pay a 54 percent premium to landlords. Despite the pricey rental rates, vacancy rates in the Plano submarket sat around 150 basis points lower than the overall market, at 4.9 percent in Q1 2023. Although market rent growth has declined since its peak of 12.2 percent in Q3 2022, growth remains strong at a rate of 10.5 percent in Q1 2023. With nearly 553 thousand square feet of industrial space currently under construction in the Plano area, the submarket looks to expand by about 1.8 percent in the coming years. However, approximately 87 percent of the new space being built is concentrated in properties over 50,000 square feet (CoStar). As a result, properties comparable to the subject asset will largely be unaffected by new supply for the foreseeable future.
The Dallas-Fort Worth metroplex is the fourth-most populous metro in the nation, with an aggregate of more than 7.7 million residents. It is composed of 13 counties stretching nearly 10,000 square miles. The city of Dallas houses 1.3 million people, followed by Fort Worth with 919 thousand residents. Strong job growth continually draws new residents to the region. To accommodate the additional traffic, the region’s transportation network is evolving. Traffic flow is improved as freeways are expanded and miles are being added to tollways and turnpikes. The growth of the transportation network is vital to supporting commuters to the metro’s numerous corporations and growing industries. Dallas/Fort Worth’s population growth in recent years ranks among the highest in the U.S. for a major metro. The Metroplex is home to 24 Fortune 500 companies and many regional headquarters, drawing workers and residents. The area’s extensive network of rail and highways, along with the International Inland Port of Dallas, ensure its status as a distribution hub.