Industrial Boulevard Portfolio 2005-2020 Industrial Blvd

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 2005 and 2020 Industrial Boulevard in Rockwall, Texas, anchored by Warehouse-Pro. The subject property consists of approximately 325,300 square feet of industrial space and is situated on 59.08 acres of land. The asset features 10 buildings, metal construction, a clear height of 16-20’, 28 drive-in doors, and 22 dock-high doors. Of the 37.5 acres of undeveloped land near the corner of Justin Road and John King Boulevard, 24.8 acres are suitable for development and 12.7 acres are restricted due to a floodplain. Situated just off Interstate 30, the property is conveniently positioned near the interchanges between President George Bush Turnpike and Interstate 635.
Currently zoned for light industrial use, the undeveloped land is also designated as a Special Commercial Corridor, permitting the development of retail and office space up to 300,000 square feet. The fully leased property is half occupied by Warehouse-Pro, a third-party logistics company that has been in business since 1976. With short-term, below-market leases in place, the property offers investors a quick turnaround value-add opportunity. Priced at about $80 per square foot, the property has a pro forma cap rate of 7.9 percent.
The subject property is primely positioned in the Rockwall submarket. While Rockwall contains a relatively small amount of industrial, office, and retail space, the submarket boasts strong fundamentals that outperform the overall Dallas-Fort Worth (DFW) market. A significant amount of industrial space was recently delivered to the submarket, pushing the vacancy rate from 2.1 percent two years ago to 7.5 percent as of Q3 2024. Nonetheless, industrial vacancies remain below the DFW market average. While most office markets in the U.S. have been impacted hard in recent years, Rockwall continues to perform well with only a 5.7 percent vacancy rate, representing a third of the DFW level. Retail space tops the Rockwall submarket with a vacancy rate of just 1.8 percent, catching the attention of major retailers such as H-E-B and IKEA (CoStar).
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.