12550 South Highway 183 9,600 SF Vacant Industrial Building Luling, TX 78648 $975,000 ($101.56/SF)

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 12500 US Highway 183 South in Luling, Texas. The subject property consists of approximately 9,600 square feet of shallow-bay industrial space and is situated on 2.47 acres of land. The three-building asset features metal construction, six units, a clear height of 20’, and six drive-in doors (one per unit). Delivered in 2023, the property is available in shell condition, easily allowing for an office space buildout. With frontage along US Highway 183, the property is 43 miles south of Austin, 61 miles northeast of San Antonio, and 147 miles west of Houston. For sale as vacant, the property can be acquired as a lease-up investment opportunity or for owner use, making it ideal for regional distribution and servicing.
The subject property is located within the relatively small Caldwell County submarket, containing 1.8 million square feet of industrial space. In the 12 months through Q3, demand was solidly in positive territory as more than 314,000 square feet were absorbed on net. During that time, supply slightly outpaced demand with about 365,000 square feet of deliveries. While vacancies remained high, Caldwell County bucked the national trend as availability held steady, only moving up 10 basis points annually to 13.5 percent in Q3. Due to the high level of vacancies, annual rent growth slipped to -0.2 percent. At $12.35 per square foot, the average market rent was up 74 percent over the last decade. Going into the last quarter of the year, roughly 88,000 square feet of industrial space was under construction in Caldwell County, representing 4.9 percent of the inventory (CoStar).
With a population of over 2.47 million residents, the population of Metro Austin has grown significantly in recent decades along with economic growth. Known as the home of South by Southwest, the Austin-Round Rock metro covers about 4,225 square miles and consists of five counties in central Texas: Travis, Williamson, Hays, Caldwell, and Bastrop. Austin’s population of nearly 980,000 people makes Travis the most populous county in the metro. Employment gains in the tech sector have contributed significantly to the metro’s recent population and median household income growth. Tesla’s newly constructed Gigafactory is expected to generate at least 5,000 jobs, supporting future relocations and increased demand for housing. The government is a significant driver in the local economy as Austin is the state capital and home to an IRS regional processing center as well as military bases. Located within a border state, the metro benefits significantly from international trade agreements with Mexico.