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Q1 2021 | E Fort Bend Commercial Real Estate Trends

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FortBend_HERO_1536x1040

E Fort Bend Commercial Real Estate Trends

  
Key Takeaways

  • Office vacancy increases, but so does leasing activity
  • Medical Office vacancy increases and average rents drop
  • Industrial vacancy drops and average rents increase
  • Retail vacancy falls and net absorption increases

Office Highlights

2021_Q1_FortBend_Office_VacancyRate  2021_Q1_FortBend_Office_NetAbsorption
   
 2021_Q1_FortBend_Office_UnderConstruction  2021_Q1_FortBend_Office_LeaseRates

The E Fort Bend office submarket contains 5.8M SF of office space. The submarket posted 69,629 SF of negative net absorption in Q1 2021, down from the 17,898 SF of negative net absorption recorded in Q4. The average vacancy rate increased from 14.5% to 15.7% over the quarter. The average quoted rental rate decreased from $22.14 to $21.90 per SF, and leasing activity increased over the quarter by 22%. There are currently no buildings under construction in the submarket.

Medical Office Highlights

2021_Q1_FortBend_Medical_VacancyRate  2021_Q1_FortBend_Medical_NetAbsorption 
   
 2021_Q1_FortBend_Medical_UnderConstruction  2021_Q1_FortBend_Medical_LeaseRates

The Fort Bend MOB submarket recorded 10,477 SF of negative net absorption in Q1 2021, a decrease from the 3,751 SF of positive net absorption recorded in the previous quarter. The average quoted rental rate dropped over the quarter from $23.09 to $22.66 per SF. The average vacancy rate increased 60 bps from 15.3% in Q4 2020 to 15.9% in Q1 2021. There are no medical office buildings over 10,000 SF under construction in the submarket.

Industrial Highlights

2021_Q1_FortBend_Industrial_VacancyRate   2021_Q1_FortBend_Industrial_NetAbsorption
   
 2021_Q1_FortBend_Industrial_UnderConstruction  2021_Q1_FortBend_Industrial_LeaseRates

The Fort Bend/Sugar Land industrial submarket contains 33.4M SF of industrial space and currently has 5.9M SF of available space. The submarket recorded 441,660 SF of positive net absorption during Q4 2020, pushing the year-end 2020 total to 1.2M SF. Vacancy decreased from 9.8% to 8.4% over the quarter, and the average asking NNN rental rate for all property types rose from $8.21 per SF to $8.34 per SF. There are 21 buildings with 2,500,557 SF of industrial space under construction and an additional 3.7M SF of proposed development. The largest building under construction is a 1.1M SF Amazon fulfillment center located in the Fort Bend Business Park.

Retail Highlights 

2021_Q1_FortBend_Retail_VacancyRate 2021_Q1_FortBend_Retail_NetAbsorption 
   
 2021_Q1_FortBend_Retail_UnderConstruction 2021_Q1_FortBend_Retail_LeaseRates 

The Fort Bend retail submarket contains 15.8M SF of retail space and currently has 1.2M SF of available space. The submarket recorded 39,007 SF of positive net absorption in Q1 2021, and the vacancy rate dropped from 7.1% in Q4 2020 to 6.9% in Q1 2021. The average asking rental rate for this retail submarket decreased from $23.78 per SF in Q4 2020 to $22.90 per SF in Q1 2021. Four retail properties totaling 99,148 SF are currently under construction, and an additional 352,638 SF is proposed.

 

Representative Properties

 2021_Q1_FortBend_11923 Highway 6_updated    2021_Q1_FortBend_3 Sugar Creek    2021_Q1_FortBend_NWC Pin Oak Rd
10 to 40 Acres, Highway 6 Frontage
11923 Highway 6, Fresno, TX 
  Three Sugar Creek Class “A” Office
3 Sugar Creek Center Blvd, Sugar Land, TX
  Prime 10.7-AC Development Site, Katy
NWC Pin Oak Rd & I-10 , Katy, TX
 2021_Q1_FortBend_16525 Lexington Blvd    2021_Q1_FortBend_13223 Murphy Road    2021_Q1_FortBend_9029 HIghway 6
Lexington Square Professional Office
16525 Lexington Blvd, Sugar Land, TX
  Weatherford Farms Industrial Dev
13223 Murphy Rd, Stafford, TX
  Shoppes at Sienna Plantation Retail
9029 Highway 6, Missouri City, TX
 2021_Q1_FortBend_1410 Gillingham Ln    2021_Q1_FortBend_3550 FM 1092    2021_Q1_FortBend_1350 Industrial Blvd
±150,000-SF Office/Flex Facility
1410 Gillingham Ln, Sugar Land, TX
  9,200-SF Office Investment Sale
3550 FM 1092, Missouri City, TX
  West Industrial Place - New Construction
1350 Industrial Blvd, Sugar Land, TX

14140 SOUTHWEST FREEWAY
Office Space for Lease
14140 Southwest Fwy, Sugar Land, TX
14140 SOUTHWEST FREEWAY
Office Space for Lease
14140 Southwest Fwy, Sugar Land, TX
THE SHOPPES AT SIENNA PLANTATION
Retail Space for Lease
Hwy 6/Sienna Plantation, Missouri City, TX
THE SHOPPES AT SIENNA PLANTATION
Retail Space for Lease
Hwy 6/Sienna Plantation, Missouri City, TX
THE SHOPPES AT SIENNA PLANTATION
Retail Space for Lease
Hwy 6/Sienna Plantation, Missouri City, TX
THE SHOPPES AT SIENNA PLANTATION
Retail Space for Lease
Hwy 6/Sienna Plantation, Missouri City, TX

2021_Q1_Fort Bend_SearchResultImage_1024x972

Q1 2021 | E Fort Bend Commercial Real Estate Trends

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