9320 ZAKA ROAD (HOUSTON, TX)
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• Located in Close Proximity to Beltway 8, Highway 249 and Highway 290
• Both Buildings Fully Leased Through November 2020
• Annual Rental Increases Throughout the Remainder of Leases
• Substantial Below-Market Rent Allows For Value-Add Opportunity
• Below Replacement Cost Price per Foot
• Tight Barrier-to-Entry: Only 5 Industrial Spaces 15-40k sf Within 2-Mile Radius Currently for Lease*
*According To CoStar Data As Of 7/25/2019
Marcus & Millichap is pleased to present the opportunity to acquire the property located at 9320 Zaka Road in Houston, Texas, leased to Hangjjn Co. O.K. Discount Warehouse and TruFiber, Inc. The subject property consists of approximately 39,592 square feet of space across two buildings and is situated on 2.24 acres of land. The two buildings are both fully leased through November 2020 with annual rental increases. The substantial below market rent allows for a significant value-add opportunity in one of Houston’s most desirable industrial submarkets. The property is located in close proximity to Beltway 8, Highway 249, and Highway 290.
Northwest Houston is a core national industrial market with a high barrier-to-entry. According to CoStar, there are only five industrial spaces currently for lease in the 15,000-40,000-square foot range within a two-mile radius of the subject property, only one of which is a standalone building. Per CoStar, average rental rates within the submarket during Q2 2019 continued to climb to an all-time high of $7.68 per square foot. Major industrial developments currently underway that are expected to bring further business activity to the immediate area include Hines’ 1.5 million-square foot Grand National Business Park, and Transwestern’s 833,000-square foot Sam Houston Distribution Center.
As the fifth most populous metro area in the U.S., Houston houses nearly 6.9 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.