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Q4 2021 | E Fort Bend Commercial Real Estate Trends

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FortBend_HERO_1536x1040

E Fort Bend Commercial Real Estate Trends

  
Key Takeaways

  • Office vacancy decreases and absorption is positive
  • Medical office vacancy is down quarterly and annually
  • Industrial records positive absorption in 2021
  • Retail records negative net absorption and vacancy increases

Office Highlights

2021_Q4_FortBend_Office_VacancyRate   2021_Q4_FortBend_Office_NetAbsorption 
 2021_Q4_FortBend_Office_UnderConstruction    2021_Q4_FortBend_Office_LeaseRates

The E Fort Bend office submarket contains 6.0M SF of office space. The submarket posted 14,972 SF of positive net absorption in Q4 2021. The average vacancy rate decreased 20 basis points over the quarter from 21.8% to 21.6%. The average quoted gross rental rate decreased over the quarter from $30.75 to $30.42 per SF, and leasing activity increased over the quarter from 61,000 SF in Q3 to 98,000 SF in Q4. There are currently no buildings under construction in the submarket.

Medical Office Highlights

 2021_Q4_FortBend_Medical_VacancyRate   2021_Q4_FortBend_Medical_NetAbsorption 
 2021_Q4_FortBend_Medical_UnderConstruction    2021_Q4_FortBend_Medical_LeaseRates

The E Fort Bend medical office submarket contains 2.2M SF of medical office space. The submarket recorded 12,327 SF of positive net absorption in Q4 2021, pushing the 2021 year-end total net absorption to 61,811 SF. The average vacancy rate decreased slightly from 12.9% to 12.3% over the quarter and decreased 280 basis points annually. Leasing activity remained steady over the quarter, recording 30,930 square feet, bringing the 2021 annual total to 114,900 SF. The average quoted gross rental rate rose over the quarter from $27.86 to $28.72 per SF. There are no medical office buildings currently under construction in the submarket.

Industrial Highlights

2021_Q4_FortBend_Industrial_VacancyRate     2021_Q4_FortBend_Industrial_NetAbsorption
 2021_Q4_FortBend_Industrial_UnderConstruction    2021_Q4_FortBend_Industrial_LeaseRates

The Fort Bend/Sugar Land industrial submarket contains 38.3M SF of industrial space and currently has 3.7M SF of available space. The submarket recorded 586,464 SF of positive net absorption during Q4 2021, bringing the year-end total to a historical 4.1M SF. Vacancy increased from 8.9% to 9.1% over the quarter and 684,175 SF of new product was delivered during the quarter. The average asking NNN rental rate for all property types increased over the quarter from $8.68 per SF to $8.94 per SF. Bulk distribution represents 37% of the existing inventory and the average rental rate ranges from $4.50-$6.00 per SF. There are eight buildings totaling 881,459 SF of industrial space that are currently under construction. The largest building under construction is a 325,028-SF distribution warehouse located in the Kirkwood Industrial Park on S. Kirkwood in Stafford.

Retail Highlights 

2021_Q4_FortBend_Retail_VacancyRate
  2021_Q4_FortBend_Retail_NetAbsorption 
 2021_Q4_FortBend_Retail_UnderConstruction    2021_Q4_FortBend_Retail_LeaseRates

The Fort Bend retail submarket contains 15.9M SF of retail space, 1.1M SF of which is available for lease. The submarket recorded 72,224 SF of positive net absorption in Q4 2021, pushing vacancy down from 6.7% in Q3 2021 to 6.3% in Q4 2021. The average asking rental rate for this retail submarket decreased from $23.55 per SF in Q3 2021 to $22.80 per SF in Q4 2021. Eight retail properties totaling 264,070 SF are currently under construction, and an additional 240,000 SF is proposed.

 

Representative Properties

 Highway 6 Sugar Land300x215jfif    2021_Q4_FortBend_PinOakRoad    Randon Dyer
±18,629-SF Pad Site, First Colony
Highway 6, Sugar Land, TX
  10-AC Katy Freewary Development Site
Pin Oak Rd & Katy Fwy, Katy, 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

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

2021_Q4_Fort Bend_SearchResultImage_1024x972

Q4 2021 | E Fort Bend Commercial Real Estate Trends

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