Permian Basin Property Sold: Colliers, Market briefs

In Midland, Texas, Colliers handled the sale of 40 acres with existing industrial buildings in Midland in the Permian Basin of West Texas.

Todd Moore and Connor Duffy of Colliers represented the seller in the transaction.

The facility, site of 82,675 SF of industrial buildings, is under a long-term lease and Colliers produced multiple offers in the marketing process.

“We were able to secure multiple competitive offers and choose a buyer with a strong track record of execution for our client,” said Todd Moore of Colliers. “The buyer purchased a premium asset in the Midland market with an extremely landlord-friendly lease structure. When other net lease assets have seen some slowdown, the oilfield service leased assets have continued to attract investor demand as they offer historically higher yields than other assets.”

The site is located northeast of downtown Midland off of Loop 250, in Midland’s high-enterprising and developing Skyview Development area

The industrial property is within the Midland industrial market, which contains 18.1 million SF of inventory with a current occupancy rate of 95 percent. The average quoted gross rental rate is $17.46 per SF.

The Midland market currently has 225,000 SF of industrial space under construction.

The site sold by Colliers is located at 5500 N County Road.

On Wednesday, West Texas Intermediate crude oil was trading over $72 a barrel.