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Q3 2022 | E Fort Bend Commercial Real Estate Trends

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E Fort Bend Commercial Real Estate Trends

Key Takeaways

  • Office posts negative absorption and vacancy increases
  • Medical office vacancy is down quarterly and annually
  • Industrial records positive absorption and vacancy drops
  • Retail records positive net absorption and vacancy falls

Office Highlights

 2022_Q3_Fort Bend_Vacancy Rate    2022_Q3_Fort Bend_Net Absorption
 2022_Q3_Fort Bend_Under Constructrion    2022_Q3_Fort Bend_Lease Rates

The E Fort Bend office submarket contains 6.1M SF of office space. The submarket posted 36,073 SF of negative net absorption in Q3 pushing the year-to-date 2022 total net absorption to negative 106,000 SF. The average vacancy rate increased 50 basis points over the quarter from 21.8% to 22.3%. The average quoted gross rental rate decreased over the quarter from $30.17 to $29.46 per SF, and leasing activity increased over the quarter from 27,155 SF in Q2 2022 to 73,443 SF in Q3 2022. There are currently no buildings under construction in the submarket.

Medical Office Highlights

 2022_Q3_Fort Bend_Medical Vacancy Rate



 2022_Q3_Fort Bend_Highlight Net Absorption

 2022_Q3_Fort Bend_Medical Under Constructrion    2022_Q3_Fort Bend_Medical Lease Rates

The E Fort Bend medical office submarket contains 1.8M SF of medical office space. The submarket recorded 3,454 SF of positive net absorption in Q3 2022. The average vacancy rate decreased 20 basis points from 10.8% to 10.6% over the quarter and decreased 160 basis points annually. Leasing activity decreased 10% over the quarter, recording 15,371 square feet. The average quoted gross rental rate decreased marginally over the quarter from $28.78 to $28.72 per SF. There are no medical office buildings currently under construction in the submarket..

Industrial Highlights

2022_Q3_Fort Bend_Industrial Vacancy Rate   2022_Q3_Fort Bend_Industrial Net Absorption
 2022_Q3_Fort Bend_Industrial Under Constructrion    2022_Q3_Fort Bend_Industrial Lease Rates

The Fort Bend/Sugar Land industrial submarket contains 39.5M SF of industrial space and currently has 3.4M SF of space available. The submarket recorded 823,738 SF of positive net absorption during Q3 2022, bringing the year-to-date 2022 total to 1.9 million SF. Vacancy decreased from 7.3% to 6.6% over the quarter. The average asking NNN rental rate for all property types increased over the quarter from $9.77 per SF to $10.00 per SF. Bulk distribution represents 38% of the existing inventory and the average rental rate is $6.00 per SF. There are seven buildings totaling 1,102,450 SF of industrial space that are currently under construction. The largest building under construction is a 523,640-SF distribution warehouse located in the Main Central Business Park at U.S. Hwy 90 and Chimney Rock.

Retail Highlights 

 2022_Q3_Fort Bend_Retail Vacancy Rate    2022_Q3_Fort Bend_Retail Net Absorption
 2022_Q3_Fort Bend_Retail Under Construction    2022_Q3_Fort Bend_Retail Lease Rates

The Fort Bend/Sugar Land retail submarket contains 16M SF of retail space, 889,185 SF of which is available for lease. The submarket recorded 39,795 SF of positive net absorption in Q3 2022, pushing the year-to-date 2022 total net absorption to 410,057 SF. Vacancy decreased 10 basis points from 5.7% in Q2 2022 to 5.6% in Q3 2022. The average asking rental rate for this retail submarket decreased slightly from $23.26 per SF in Q2 2022 to $23.23 per SF in Q3 2022. There are no retail properties currently under construction in the submarket.

Representative Properties

2022_Q3_Fort Bend_Stiles Lane 2022_Q3_Fort Bend_FM 723 2022_Q3_Fort Bend_Julies Rivers
Two (2) ±50,040 SF Industrial Buildings 50,004 SF Office/Warehouse 6,145-SF Office Building in Sugar Land
13027 Stiles Ln
Sugar Land, TX
1350 Industrial Blvd
Sugar Land, TX
407 Julie Rivers Dr
Sugar Land, TX
2022_Q3_Fort Bend_FM 1464 2022_Q3_Fort Bend_Industrial Boulevard 2022_Q3_Fort Bend_Reed Road
±21.5 AC Multifamily Site 50,004 SF Office/Warehouse ±12,175 SF Office/Warehouse
FM 1464 & Beechnut
Sugar Land, TX
1350 Industrial Blvd
Sugar Land, TX
12560 Reed Rd
Sugar Land, TX
2022_Q3_Fort Bend_Stafford Road 2022_Q3_Fort Bend_Southwest Freeway 2022_Q3_Fort Bend_Gillinghan Lane
±5.11 AC in Stafford, TX Four-Story, 69,011 SF Office Building ±150,000 SF Office/Flex Building
Stafford Rd & Mula Rd
Stafford, TX
14140 Southwest Fwy
Sugar Land, TX
1410 Gillingham Ln
Sugar Land, TX


Q3 2022 | E Fort Bend Commercial Real Estate Trends

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Lisa Bridges

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