E Fort Bend Commercial Real Estate Trends
The Fort Bend office submarket posted 31,309 SF of negative net absorption in Q2 2020. The average vacancy rate increased to 11.8% from 10.3% over the quarter. The average quoted rental rate dropped from $30.97 to $30.39 per SF and leasing activity decreased over the quarter by 40%. There is one building totaling 56,000 SF under construction - an expansion for the Houston Community College System located on W Airport Blvd. The building is expected to deliver in Q3 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.
Medical Office Market
The average quoted rental rate increased over the quarter from $27.63 to $28.02 per SF. The average vacancy rate rose 70 bps from 14.6% in Q1 2020 to 15.3%. Leasing activity remained steady over the quarter, totaling 18,602 SF. Currently, there are no buildings over 10,000 SF under construction in the submarket.
Although the submarket recorded 61,451 SF of positive net absorption during Q2 2020, vacancy remained at 9.4% due to the completion of a new building that was added to the existing inventory. The average quoted rental rate rose over the quarter from $8.11 per SF to $8.20 per SF. Currently, there are seventeen buildings with 1,049,600 SF of industrial space under construction. The largest project is the 228,900 SF speculative industrial distribution warehouse located in the Stafford Crossing development located at Highway 59 (Highway 69) and Highway 90, in Stafford, TX.
The average asking rental rate for the Fort Bend retail submarket increased from $23.06 per SF in Q1 2020 to $23.23 per SF in Q2 2020. The submarket recorded 15,699 SF of negative net absorption in Q2 2020, increasing the vacancy rate from 6.4% to 6.9%. Five properties totaling 110,900 SF are currently under construction. The largest project includes two 30,750 SF buildings in Tang City Plaza on Highway 6 in Stafford, TX. The buildings are scheduled to deliver in Q3 2020.