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Q3 2020 | E Fort Bend Commercial Real Estate Trends

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E Fort Bend Commercial Real Estate Trends

Office Market

The Fort Bend office submarket posted 57,403 SF of positive net absorption in Q3 2020, up from the 129,161 SF of negative net absorption recorded in Q2. The average vacancy rate decreased marginally to 13.5% from 13.6% over the quarter. The average quoted rental rate dropped from $30.39 to $28.44 per SF, and leasing activity decreased over the quarter by 42%. One building totaling 56,000 SF delivered during the quarter - an expansion for the Houston Community College System located on W Airport Blvd. There are no office buildings currently under construction in the submarket.

 2020_Q3_FortBend_MarketIndicators

*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 $27.74 to $28.33 per SF. The average vacancy rate rose 50 bps from 15.3% in Q2 2020 to 15.8% in Q3 2020. Leasing activity decreased by 80%. One 12,000-SF building was completed and added to inventory during Q3 2020. Currently, there are no medical office buildings over 10,000 SF under construction in the submarket.

Industrial Market*

Although the submarket recorded 120,460 SF of positive net absorption during Q3 2020, vacancy increased due to the completion of three new buildings that were added to the existing inventory. The average quoted rental rate rose over the quarter from $8.20 per SF to $8.30 per SF. Currently, there are seventeen buildings with 1,095,700 SF of industrial space under construction. The largest project is the 326,800 SF speculative industrial warehouse located in the Sugar Land Crossroads development located at Dairy Ashford and West Airport, in Sugar Land, TX. 

Retail Market 

The average asking rental rate for the Fort Bend retail submarket increased from $23.12 per SF in Q2 2020 to $24.08 per SF in Q3 2020. The submarket recorded 61,221 SF of negative net absorption in Q3 2020, and the vacancy rate increased from 6.9% to 7.6%. Four retail properties totaling 80,165 SF are currently under construction, the largest being a 30,750-SF building in Tang City Plaza on Highway 6 in Stafford. The buildings are scheduled to deliver in Q4 2020. One 49,300-SF building delivered during Q3 2020.

 

 

Featured Properties

     

2020_Q2_FortBend_11923 Highway 6_1079352

10 TO 40 ACRES FOR DEVELOPMENT
HIGHWAY 6 FRONTAGE
11923 Highway 6
Fresno, TX 77545

 

2020_Q2_FortBend_SEC Highway 36_1071282_new2

346 AC DEVELOPMENT SITE    
SEC SH 36 & Spur 10
Rosenberg, TX 77471

     

Q3_2019_FortBend_Office_1

THREE SUGAR CREEK
Office Space for Lease
3 Sugar Creek Center Blvd
Sugar Land, TX 77478

 

2020_Q3_FortBend_3500 FM 1092

3,200 SF TURN-KEY OFFICE SUITE
3550 FM 1092 / Murphy Rd Near Hwy 6
Missouri City, TX 77459

     

 2019Q4FortBendLexingtonSquare

2ND GEN END CAP RESTAURANT
4,401 SF Space in Lexington Square
16535 Lexington Blvd
Sugar Land, TX 77479

  2020_Q3_FortBend_9918 Brooklet Dr_new

22,500 SF OFFICE / FLEX FACILITY
Tilt-wall Single Tenant Flex Building
9918 Brooklet Drive
Sugar Land, TX 77099
     

 2019Q4FortBendSite Outlined

GILLINGHAM DISTRIBUTION CENTER, PH II
Proposed 104,000 SF New Construction
1621 Gillingham Ln
Sugar Land, TX 77478

 

2020_Q3_FortBend_1350 Industrial Blvd

WEST INDUSTRIAL PLACE
New Construction Sugar Land Business Park
1350 Industrial Blvd
Sugar Land, TX 77478

 

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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Q3 2020 | E Fort Bend Commercial Real Estate Trends

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