Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 405 Dr. Martin Luther King Jr. Place South, Woodlands, Texas. The subject property consists of approximately 10,000 square feet of warehouse space and is situated on 0.59 acres of land. The asset features a clear height of 12’ with a 14’ eave height, eight grade-level doors, and single-phase power. Additionally, the property offers approximately 1,500-Square-Feet of mezzanine storage space above the office space, about 9,000-Square-Feet of lighted paved parking with a sliding entry gate, and the ability to convert the building to a multi-tenant asset. The Woodlands/Conroe Submarket is an ideal location for distributors serving north Houston. The area, which is about 30 miles north of Downtown Houston, is easily accessible by major highways such as I-45, I-69, and State Highway 99 (Grand Parkway) and is located at the heart of some of Houston's fastest-growing population centers. Year-over-year, rents have grown by 2.7 percent, down from the peak of 5.2 percent recorded in 2202 Q2. Concessions are still low, particularly among small-bay tenants. An encouraging sign is that the vacancy rate appears to have peaked. After developers completed almost 2.1 million SF last year, 2024 should be lighter. Current projections show just 520,000 SF of new supply this year, a 75 percent pullback from the prior year as total construction starts fell sharply last year due to elevated interest rates. This could set the stage for falling vacancies and accelerating rent growth in 2025. (Costar) As the fifth most populous metro area in the U.S., Houston houses over seven 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.