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Q3 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_Q3_FortBend_Office_VacancyRate    2021_Q3_FortBend_Office_Net Absorption
 2021_Q3_FortBend_Office_Under Construction    2021_Q3_FortBend_Office_Lease Rates

The E Fort Bend office submarket contains 6.1M SF of office space. The submarket continued to contract and posted 59,161 SF of negative net absorption in Q3 2021. The average vacancy rate increased 100 basis points over the quarter from 18.6% to 19.6%. The average quoted gross rental rate decreased over the quarter from $33.86 to $33.68 per SF, and leasing activity increased over the quarter by 11.5%. There are currently no buildings under construction in the submarket.

Medical Office Highlights

 2021_Q3_FortBend_MedicalOffice_VacancyRate    2021_Q3_FortBend_MedicalOffice_Net Absorption
 2021_Q3_FortBend_MedicalOffice_Under Construction    2021_Q3_FortBend_MedicalOffice_Lease Rates

The E Fort Bend medical office submarket contains 2.3M SF of medical office space. The submarket recorded 4,378 SF of positive net absorption in Q3 2021, an improvement over the previous quarter’s negative net absorption of 1,965 SF. Leasing activity decreased over the quarter, recording 24,614 square feet. The average quoted gross rental rate rose over the quarter from $27.51 to $28.00 per SF. The average vacancy rate decreased slightly from 14.6% to 14.4% over the quarter and decreased 60 basis points annually. There are no medical office buildings under construction in the submarket.

Industrial Highlights

2021_Q3_FortBend_Industrial_VacancyRate    2021_Q3_FortBend_Industrial_Net Absorption 
 2021_Q3_FortBend_Industrial_Under Construction    2021_Q3_FortBend_Industrial_Lease Rates

The Fort Bend/Sugar Land industrial submarket contains 37.6M SF of industrial space and currently has 4.5M SF of available space. The submarket recorded a historical 2,035,462 SF of positive net absorption during Q3 2021, half of which was due to Amazon’s move into its new Missouri City facility. Vacancy decreased slightly from 9.0% to 8.9% over the quarter and 2.2 million SF of new product was delivered during the quarter. The average asking NNN rental rate for all property types increased over the quarter from $8.43 per SF to $8.76 per SF. Bulk distribution represents 37% of the existing inventory and the average rental rate is $6.00 per SF. There are seven buildings totaling 998,615 SF of industrial space currently under construction. The largest building under construction is a 440,000-SF warehouse located in Park 8Ninety on Highway 90A in Missouri City.

Retail Highlights 

  2021_Q3_FortBend_Retail_Net Absorption 
 2021_Q3_FortBend_Retail_Under Construction    2021_Q3_FortBend_Retail_Lease Rates

The Fort Bend retail submarket contains 15.9M SF of retail space, 1.2M SF of which is available for lease. The submarket recorded 154,034 SF of positive net absorption in Q3 2021, pushing vacancy down from 7.4% in Q2 2021 to 6.5% in Q3 2021. The average asking rental rate for this retail submarket increased from $23.32 per SF in Q2 2021 to $23.51 per SF in Q3 2021. Ten retail properties totaling 292,770 SF are currently under construction, and an additional 184,000 SF is proposed.


Representative Properties

 Highway 6 Sugar Land300x215jfif    Sugar Creek Office Center    Randon Dyer
±18,629-SF Pad Site, First Colony
Highway 6, Sugar Land, TX
  Sugar Creek Office Center
101 Parklane Boulevard, Sugar Land, TX
  ±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

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

2021_Q3_Fort Bend_SearchResultImage_1024x972

Q3 2021 | E Fort Bend Commercial Real Estate Trends

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Related Experts

Lisa Bridges

Director of Market Research


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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Jim Pratt has more than 35 years’ experience in commercial real estate.  Prior to joining Colliers in 2009, he was a Principal with NAI Houston. In addition to representing tenants, buyers and sellers of real estate, Jim has represented many institutional and private owners in the leasing of office and industrial properties and has developed an in-depth understanding of the dynamics involved and what makes a deal work for both tenants and landlords.  He is known for his significant creativity in the structuring of unique solutions for complex assignments, resulting in “win-win” transactions.  His analytical skills and his ability to communicate the pertinent facts throughout the negotiation process have produced significant results.

Jim has represented tenants and owners ranging from local entrepreneurs to large corporations in transactions in Houston and throughout North America, completing more than 100 assignments outside of Texas.  He has handled all types of industrial and land  requirements in addition to offices leases, and the acquisition and disposition of all types of real estate. In the last economic downturn, Jim helped structure sale/leasebacks providing significant liquidity for one of his clients.  Jim is currently assisting clients with the evaluation and implementation of this same strategy, as well as lease restructuring where applicable.

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Barkley Peschel

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Jason Scholtz

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Jason’s primary focus is on buying, selling and leasing supply chain properties throughout the greater Houston region. Whether it’s locating additional distribution space for a growing e-commerce company, advising a client on potential relocation sites, or helping a property owner monetize an under-performing asset, Jason’s expertise and knowledge of supply chain properties ensure that his clients are making the best possible real estate decisions.  If you are considering an upcoming real estate project that involves distribution, logistics, or manufacturing, contact Jason for a complimentary advisory consultation today.   

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