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Q2 2019 | E Fort Bend Commercial Real Estate Trends

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Office Market

The Fort Bend office submarket posted 67,322 SF of negative net absorption in Q2 2019. The average vacancy rate rose 210 basis points (bps) increasing to 12.4% over the quarter due to the addition of 50 lease spaces. The average quoted rental rate increased from $27.69 to $28.80 per SF. Leasing activity decreased over the quarter by 35%. HCSS is expanding their footprint with the addition of a 56,000-SF office building on their current campus on Airport Blvd.

Medical Office Market

The average quoted rental rate decreased 3.6% over the quarter from $29.05 to $28.00 per SF. The average vacancy rate dropped 50 bps from 14% in Q1 2019 to 13.5% in Q2 2019. Leasing activity increased significantly, growing by 88% over the quarter. Three buildings totaling 136,190 SF are currently under construction. The largest of the three is an 87,500-SF, 100% pre-leased medical office condo located at 800 Bonaventure Way. 

Industrial Market*

The submarket recorded 6,233 SF of negative net absorption during Q2 2019, a major tumble from the 269,713 SF of positive net absorption recorded in Q1 2019. Because 639,764 SF of new buildings were completed this quarter, the average industrial vacancy rate rose 180 basis points, increasing from 3.8% to 5.6%. The average quoted rental rate rose 11.9% over the quarter from $6.73 per SF to $7.53 per SF. Currently, there are 29 buildings with almost 2M SF of industrial space under construction. The largest project is a 352,769-SF speculative distribution center located in the Park 8Ninety industrial park in Missouri City, TX. Tramontina USA, a major Brazilian company and one of the larger employers in Sugar Land, announced they were scaling back their domestic operations and laying off 150 employees in this market. They already have 229,000 SF of space on the sublease market, but that number may increase as a result of the layoffs.  

Retail Market 

The average asking rental rate for the Fort Bend retail submarket decreased marginally from $23.26 per SF in Q1 2019 to $23.05 per SF in Q2 2019. The submarket recorded 29,417 SF of positive net absorption in Q2 2019, but the vacancy rate remained at 5.2%. There are nine properties totaling 152,516 SF under construction. The largest project is Sienna Crossing Phase III, a 60,000-SF addition that will include Spec’s Wine and 24-Hour Fitness as new tenants. The shopping center is expected to be completed around January 2020.

*For the purpose of this report, the geographical boundaries previously used for the Fort Bend industrial submarket have been updated to include buildings that are typically considered by our clients when they are seeking locations in the Fort Bend/Sugar Land and Missouri City areas.

 

Featured Properties

Land

   

1.50 AC COMMERCIAL PAD SITE
Office Development Pad Site
Creekbend Drive, Sugar Land, TX 77478

 

34.3 AC REDEVELOPMENT SITE    
Largest Contiguous Tract in Stafford
SEC Mula & Murphy Rds, Stafford, TX  77477  

Office

   

SUGAR LAND OFFICE INVESTMENT
Office/Bank Building for Sale
4690 Sweetwater Blvd, Sugar Land, TX 77479

 

SUGAR LAND BUSINESS PARK
7,000 SF Office for Sale or Lease
12551 Emily Ct, Sugar Land, TX 77478

Retail

   

LEXINGTON SQUARE
Retail/Office Space For Lease
16525 Lexington Blvd, Sugar Land, TX 77479

 

THE SHOPPES AT SIENNA PLANTATION
2,201 SF End Cap Retail Space for Lease
Hwy 6/Sienna Plantation, Missouri City, TX 77459

Industrial

   


10749 CASH ROAD
40,000 SF Warehouse/Office for Lease
Freeport Southwest Business Park Missouri City, TX 77477

 

NEWLY CONSTRUCTED WAREHOUSE
±20,036 SF Warehouse/Office for Lease
6911 Brasada Dr, Houston, TX 77085

 

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

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Q2 2019 | E Fort Bend Commercial Real Estate Trends

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Lisa Bridges

Director of Market Research

Houston

Lisa joined Colliers in 2010 as Director of Market Research and has 37 years of commercial real estate experience. Lisa initiates proactive market research projects to further the business goals of the company. She writes and prepares 29 market reports annually, including quarterly reports on Houston's retail, office, industrial and healthcare properties.  Further, she prepares statistical ownership reports for various clients as well as an annual Houston Economic Overview. Lisa also creates PowerPoint market presentations, trade journal articles, and other marketing materials supporting the company's business endeavors. She works with senior management in planning the company's marketing strategy and public relations support for local and national conferences, luncheon meetings, recruitment programs, and special events.  Lisa works closely with the company's brokers to develop effective custom market research material specific to existing and potential clients.

Lisa serves on the Colliers Editorial Board, the Colliers U.S. Research Council, and is a recipient of the Colliers Researcher of the Year Award.

Lisa earned the Commercial Property Research Certification (CPRC) from Colliers University.  CPRC is the first and only accreditation for commercial real estate research professionals. It offers a professional development path to increase strategic and tactical expertise in marketing/research, knowledge of the industry and capabilities with commercial real estate tools.

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