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Q2 2021 | E Fort Bend Commercial Real Estate Trends

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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 increases as new inventory delivers
  • Retail records negative net absorption and vacancy increases

Office Highlights

2021_Q2_FortBend_Office_VacancyRate   2021_Q2_FortBend_Office_NetAbsorption 
 2021_Q2_FortBend_Office_UnderConstruction    2021_Q2_FortBend_Office_LeaseRates

The E Fort Bend office submarket contains 6.0M SF of office space. The submarket continued to contract and posted 59,580 SF of negative net absorption in Q2 2021. The average vacancy rate increased from 17.8% to 18.6% over the quarter. The average quoted gross rental rate decreased over the quarter from $31.21 to $30.92 per SF, and leasing activity increased over the quarter by 12.5%. There are currently no buildings under construction in the submarket.

Medical Office Highlights

2021_Q2_FortBend_Medical_VacancyRate     2021_Q2_FortBend_Medical_NetAbsorption
 2021_Q2_FortBend_Medical_UnderConstruction    2021_Q2_FortBend_Medical_LeaseRates

The E Fort Bend medical office submarket contains 2.2M SF of medical office space. The submarket recorded 446 SF of positive net absorption in Q2 2021, an improvement over the previous quarter’s negative net absorption of 15,050 SF. Leasing activity increased over the quarter, recording 43,804 square feet. The average quoted gross rental rate dropped over the quarter from $27.65 to $27.38 per SF. The average vacancy rate remained unchanged at 16.8%. There are no medical office buildings under construction in the submarket.

Industrial Highlights

2021_Q2_FortBend_Industrial_VacancyRate    2021_Q2_FortBend_Industrial_NetAbsorption 
 2021_Q2_FortBend_Industrial_UnderConstruction    2021_Q2_FortBend_Industrial_LeaseRates

The Fort Bend/Sugar Land industrial submarket contains 34.3M SF of industrial space and currently has 4.8M SF of available space. The submarket recorded 247,083 SF of positive net absorption during Q2 2021, down from the 390,621 SF recorded in Q1 2021. Vacancy increased from 7.8% to 9.0% over the quarter due to the delivery of 712,600 SF of new product. The average asking NNN rental rate for all property types decreased slightly over the quarter from $8.48 per SF to $8.43 per SF. Bulk distribution represents 32% of the existing inventory and the average rental rate is $6.60 per SF. There are 16 buildings totaling 3.0M SF of industrial space currently under construction. The largest building under construction is a 1.1M-SF Amazon fulfillment center located in the Fort Bend Business Park.

Retail Highlights 

 2021_Q2_FortBend_Retail_UnderConstruction    2021_Q2_FortBend_Retail_LeaseRates

The Fort Bend retail submarket contains 15.8M SF of retail space of which 1.3M SF is available for lease. The submarket recorded 94,434 SF of negative net absorption in Q2 2021, pushing vacancy up from 6.9% in Q1 2021 to 7.5% in Q2 2021. The average asking rental rate for this retail submarket decreased from $23.45 per SF in Q1 2021 to $22.32 per SF in Q2 2021. Eight retail properties totaling 294,820 SF are currently under construction, and an additional 160,000 SF is proposed.


Representative Properties

 Highway 6 Sugar Land300x215jfif    16535Lexington Blvd_300x215    12560 Reed Road_300x215
±18,629-SF Pad Site, First Colony
Highway 6, Sugar Land, TX
  4,401-SF Restaurant End Cap
16535 Lexington Blvd, Sugar Land, TX
  SW Houston Net Lease Investment
12560 Reed Rd, Sugar Land, TX
 2021_Q1_FortBend_16525 Lexington Blvd    WeatherfordFarms_300x215    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

Office Space for Lease
14140 Southwest Fwy, Sugar Land, TX
Office Space for Lease
14140 Southwest Fwy, Sugar Land, TX
Retail Space for Lease
Hwy 6/Sienna Plantation, Missouri City, TX
Retail Space for Lease
Hwy 6/Sienna Plantation, Missouri City, TX
Retail Space for Lease
Hwy 6/Sienna Plantation, Missouri City, TX
Retail Space for Lease
Hwy 6/Sienna Plantation, Missouri City, TX


Q2 2021 | E Fort Bend Commercial Real Estate Trends

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Related Experts

Lisa Bridges

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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.

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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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Kolbe Curtice

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Kolbe has been a licensed Texas real estate broker for more than 40 years. In 1997, he opened Curtice Commercial Real Estate in Sugar Land where the fast-paced growth in Fort Bend County propelled him into a broad spectrum of real estate solutions. Kolbe merged CCRE with Colliers in the Houston office in 2010. Over the last 15+ years Kolbe has played a significant roll in developing Sugar Land and the Fort Bend County market. Kolbe specializes in office and retail sales, leasing and development. Prior to opening Curtice Commercial Real Estate, Kolbe spent 11 years with Weingarten Realty Investors where he handled leasing/asset management for shopping centers in Southeast and Central Texas.

Kolbe was a founder and organizer of Founders Bank in Sugar Land in 2007 and served as director until the bank merged with Vista Bank in 2011.  He is also a founding member and past president of the Fort Bend Society of Commercial Realtors. Kolbe currently serves as an advisory director for the Fort Bend Business Journal.

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Jim Pratt


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Barkley Peschel

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Jason Scholtz

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