Navigating the complexities of commercial real estate in Midland, TX, requires a keen understanding of the market and a commitment to finding the right fit. Tucker Schneemann, Senior Associate at NRG Realty Group, recently demonstrated both while assisting an oilfield service company, The Tenant, in their search for an industrial service facility. After an exhaustive search, the best solution came through a build-to-suit option that perfectly aligned with The Tenant’s needs, demonstrating the importance of adaptability and market insight in securing the ideal space.
The Tenant is a family-owned oilfield service company providing casing running services and equipment rental in the Permian Basin. The US operations are an expansion of our Canadian business, where we have spent over 36 years building our trusted casing-running business. Currently headquartered in Odessa, TX, they are outgrowing their existing facility and looking to upgrade so they started searching the market. The Tenant came across one of NRG’s listings in March 2024 and reached out. Schneemann answered the call to learn about their business operations and facility needs. The Tenant required a robust office area, 20,000 SF of shop space, and 10+ Acres for yard space and a multi-bed man camp. Schneemann considered these requirements and came to the conclusion that the property they called on was not the right fit, but he would not give up on the challenge to find their perfect fit.
The Tenant leaned on Schneemann’s expertise as he diligently explored the market for alternatives. He scoured the market to find existing facilities that might check the boxes. However, the Midland-Odessa market is saturated with smaller footprint buildings and finding 10+ contiguous acres in a convenient location for employees and customers is a feat. Schneemann realized there was nothing readily available for The Tenant to move into so they went back to the drawing board.
Conversations of a custom build-to-suit project began when The Tenant revealed they had a year left on their lease. Schneemann leveraged his experience and resources in the NRG network to start the build to suit process. First, they listed their building requirements including square footage, number of private offices, multiple man camp units, etc. Second, they assessed a location for this building that would be easily accessible but away from the busy traffic of the interstate. Then Schneemann did the heavy lifting for The Tenant by getting quotes from multiple developers and searching for the perfect land parcel. After multiple negotiations, The Tenant was happy to accept a proposal from a local renowned developer.
This custom facility will be built to The Tenant’s specifications and ready for operations by the end of their current lease. Schneemann advises The Tenant on the floor plan by combining their needs with amenities and features of state-of-the-art facilities. From overhead bridge cranes to double drove-through wash-bays, this is sure to be a stunner property!
Ground breaking is scheduled for mid October, stay tuned as we track the progress of this build to suit project. Do you feel like you’ve been endlessly searching for the right facility to fit your company’s needs? Consider a build to suit! Contact us today to get started on your property search.