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Q1 2022 | E Fort Bend Commercial Real Estate Trends

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FortBend_HERO_1536x1040

E Fort Bend Commercial Real Estate Trends

  
Key Takeaways

  • Office posts negative absorption and vacancy increases
  • Medical office vacancy is down quarterly and annually
  • Industrial records positive absorption and vacancy drops
  • Retail records positive net absorption and vacancy falls

Office Highlights

 2022_Q1_FortBend_VacancyRates_OfficeHighlights    2022_Q1_FortBend_NetAbsorption_OfficeHighlights
 2022_Q1_FortBend_UnderConstruction_OfficeHighlights    2022_Q1_FortBend_LeaseRates_OfficeHighlights
 

The E Fort Bend office submarket contains 6.0M SF of office space. The submarket posted 38,344 SF of negative net absorption in Q1 2022. The average vacancy rate increased 70 basis points over the quarter from 20.9% to 21.6%. The average quoted gross rental rate decreased over the quarter from $30.42 to $29.95 per SF, and leasing activity dropped over the quarter from 100,100 SF in Q4 2021 to 34,700 SF in Q1 2022. There are currently no buildings under construction in the submarket.

Medical Office Highlights

 2022_Q1_FortBend_VacanyRate_MedicalOfficeHighlights   2022_Q1_FortBend_NetAbsorption_MedicalOfficeHighlights 
 2022_Q1_FortBend_UnderConstruction_MedicalOfficeHighlights    2022_Q1_FortBend_LeaseRates_MedicalOfficeHighlights
 

The E Fort Bend medical office submarket contains 1.8M SF of medical office space. The submarket recorded 20,885 SF of positive net absorption in Q1 2022,. The average vacancy rate decreased 120 basis points from 11.6% to 10.4% over the quarter and decreased 300 basis points annually. Leasing activity decreased 29.6% over the quarter, recording 25,505 square feet. The average quoted gross rental rate rose over the quarter from $29.39 to $29.49 per SF. There are no medical office buildings currently under construction in the submarket.

Industrial Highlights

2022_Q1_FortBend_VacancyRate_IndustrialHighlights   2022_Q1_FortBend_Net Absorption_IndustrialHighlights
 2022_Q1_FortBend_UnderConstruction_IndustrialHighlights    2022_Q1_FortBend_LeaseRate_IndustrialHighlights
 

The Fort Bend/Sugar Land industrial submarket contains 38.3M SF of industrial space and currently has 3.7M SF of space available. The submarket recorded 336,952 SF of positive net absorption during Q1 2022. Vacancy decreased from 9.5% to 8.7% over the quarter. The average asking NNN rental rate for all property types increased over the quarter from $9.28 per SF to $9.41 per SF. Bulk distribution represents 38% of the existing inventory and the average rental rate ranges from $5.00-$6.00 per SF. There are nine buildings totaling 1,009,459 SF of industrial space that are currently under construction. The largest building under construction is a 325,028-SF distribution warehouse located in the Kirkwood Industrial Park on S. Kirkwood in Stafford.

Retail Highlights 

 2022_Q1_FortBend_VacancyRate_Retail    2022_Q1_FortBend_NetAbsorption_Retail
 2022_Q1_FortBend_UnderConstruction_Retail    2022_Q1_FortBend_LeaseRate_Retail
 

The Fort Bend/Sugar Land retail submarket contains 15.9M SF of retail space, 835,000 SF of which is available for lease. The submarket recorded 262,636 SF of positive net absorption in Q1 2022, pushing vacancy down from 6.3% in Q4 2021 to 5.6% in Q1 2022. The average asking rental rate for this retail submarket decreased from $22.63 per SF in Q4 2021 to $22.19 per SF in Q1 2022. Five retail properties totaling 92,960 SF are currently under construction, and an additional 279,000 SF is proposed.

 

Representative Properties

 2022Q1FortBendW Sycamore Rd    2022_Q1_FortBend_Beechnut    Randon Dyer
±71,438 SF Office/Warehouse on ±4.5 AC
701 W. Sycamore Road, Fresno, TX
  1-5 AC Shovel-Ready Pad Sites
NWC of FM 1464 & Beechnut Street
  ±28,650-SF Office/Warehouse on ±5.3 AC
105 Randon Dyer Rd, Rosenberg, TX
 2021_Q1_FortBend_16525 Lexington Blvd    2021_Q3_FortBend_Weatherford Farms    2021_Q1_FortBend_9029 HIghway 6
Lexington Square Professional Office
16525 Lexington Blvd, Sugar Land, TX
  Weatherford Business Park
Murphy Rd/Mula 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

2022_Q1_Fort Bend_SearchResultImage_1024x972

Q1 2022 | E Fort Bend Commercial Real Estate Trends

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