Lemons Road Industrial Park
33,750 SF | Value-Add | $114/SF | 9.00% Pro Forma Cap Rate | Fort Worth, TX
Marketing description
Lemons Road Industrial Park (the “Property”) is a ±33,750-square-foot, multi-tenant small-bay industrial asset located at 5160–5172 Lemons Rd. in Fort Worth, Texas, offering investors a compelling value-add opportunity in one of DFW’s strongest performing small-bay industrial markets.
Strategically positioned less than four miles east of I-35W and within minutes of Burleson, Mansfield, Arlington, Everman, and Kennedale, the Property benefits from excellent regional connectivity and strong surrounding demographics, including average household incomes exceeding $136,300 and median home values above $336,900 within a one-mile radius.
The Property is currently leased at average in-place rents of $6.88/SF NNN, representing a substantial discount to verified market rental comps of approximately $10–$11/SF NNN. With a WALT of less than 19 months, investors are well-positioned to mark rents to market in the near term and drive meaningful NOI growth. This rental upside supports a projected 9.00% Year-5 pro forma cap rate.
Constructed primarily in 2018, Lemons Road Industrial Park features highly functional small-bay product with mostly 16'–18' clear heights, an efficient 5% office / 95% warehouse finish-out, and an average suite size of approximately 3,068 square feet - ideal for servicing the most active segment of small-bay tenants. The Property is further enhanced by industrial outside storage (IOS), a highly sought-after amenity that is increasingly difficult to replicate and a meaningful differentiator within the market.
Submarket fundamentals further strengthen the investment thesis, with current flex occupancy averaging 95.1%, projected annual rent growth of 3.28% through 2030, and less than 1% of new supply expected through 2028. These supply-demand dynamics create a favorable environment for continued rent growth and long-term value appreciation.
Overall, Lemons Road Industrial Park offers investors the opportunity to acquire a well-located, functional small-bay industrial asset with substantial near-term mark-to-market upside, supported by durable tenant demand, limited future supply, and strong demographic fundamentals.
Investment highlights
- Value-Add Small-Bay Opportunity: ±33,750 SF multi-tenant small-bay industrial property located in Fort Worth, Texas
- Significant Mark-to-Market Rent Upside: In-place rents of $6.88/SF NNN compared to verified market comps of $10–$11/SF NNN, creating meaningful near-term NOI growth potential
- Attractive Going-In Yield: 6.03% in-place cap rate with the ability to capture substantial rental growth over the near term
- Strong Pro Forma Returns: Projected 9.00% Year-5 pro forma cap rate supported by a WALT of less than 19 months
- Affluent Surrounding Demographics: $136,300+ average household income and $336,900+ median home values within a one-mile radius
- Functional Small-Bay Product with IOS: Built primarily in 2018, featuring mostly 16'–18' clear heights and highly desirable industrial outside storage
- Efficient Suite Configuration: Approximately 5% office / 95% warehouse finish-out with an average suite size of ±3,068 SF - well suited for small-bay tenant demand
- Strategic Fort Worth Location: Less than four miles east of I-35W with convenient access to Burleson, Mansfield, Arlington, Everman, and Kennedale
- Tight Submarket Fundamentals: 95.1% flex occupancy with projected average annual rent growth of 3.28% through 2030 (CoStar)
- Limited New Supply Pipeline: Less than 1% of new inventory expected to be delivered through 2028, supporting future occupancy and rent growth
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