Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 2230 East Murphy Street in Odessa, Texas. The subject property consists of approximately 4,930 total square feet, including 4,130 square feet of warehouse space, and is situated on 0.43 acres of land. The single-tenant asset features two dock-high doors, one grade-level door, and a clear height of 16’. Most of the lot is fenced-in with gate access to East Murphy Street, allowing the property to easily accommodate outdoor storage space. For sale as vacant, buyers can use the property for owner use or as a lease-up investment opportunity. Strategically located on the corner of South Meadow Avenue and East Murphy Street in the Odessa industrial market, the property sits just half a mile from the service road to Interstate 20. Odessa is a relatively small market, containing 12.8 million square feet of industrial space. Thanks to the resiliency in oil prices in 2023, the oil-rich Odessa market has bucked the national trend with falling vacancies for much of the last year. As the third quarter of 2023 comes to a close, the vacancy rate sat at 9.4 percent, down 150 basis points year-over-year. Despite availability tightening, market rent growth continues to slow, up just 4.4 percent annually in Q3. However, with only about 48,000 square feet under construction (representing less than 1.0 percent of current inventory), market rents and vacancies will largely be unaffected by new supply for the foreseeable future (CoStar). Since bottoming in March, the price of oil has recovered by over 40 percent, directly benefitting the Odessa market. Given that Saudi Arabia and Russia (the top two oil exporting nations) have agreed to cut production through the end of 2023, oil prices have more room to move up as global oil demand is projected to outpace supply. Compounding this is the inevitable halting of withdrawals from the Strategic Petroleum Reserve (which are down to 1983 levels) that have been used by President Biden to keep a lid on oil prices. Even with the threat of recession, the near-term outlook for oil looks bright, which is good news for the Odessa industrial market. 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. As the largest single source of oil and gas deposits in the United States, Odessa has long been known for its rich resources. New businesses have come to the city that have helped diversify the economy as well as reinforce the quality-of-life standards. Odessa proudly boasts worldclass cultural and recreational facilities as well as healthcare and transportation often associated with larger cities. It also serves as the crucial midpoint between Fort Worth and El Paso. Lucrative financial incentives, site selection, logistics, qualified workforce, easy access to foreign markets, and low cost-of-living make it easy to do business (odessatex.com). Major industries include: medical, energy, distribution, manufacturing, and technology.