Submarket Snapshot
FORT BEND
Q4 2018
E Fort Bend Commercial Real Estate Trends
Lisa Bridges Director of Market Research | Houston
Office Market
Market
The Fort Bend office submarket posted 11,031 SF of positive net absorption in Q4 Indicators Q3 2018 Q4 2018
2018, an 85% decrease from the previous quarter. The average vacancy rate fell OFFICE
10 basis points (bps) from 10.7% to 10.6% over the quarter and the average quoted
rental rate decreased slightly by 1.0% from $26.69 to $26.42 per SF. There are no VACANCY 10.7% 10.6%
buildings currently under construction. NET ABSORPTION 80,793 11,031
$26.69 $26.42
Medical Office Market RENTAL RATE
The average quoted rental rate increased over the quarter from $29.10 to $29.41 per
SF. The average vacancy rate rose 100 bps from 11.5% in Q3 2018 to 12.5% in Q4 MEDICAL OFFICE
2018. Leasing activity decreased from 81,400 SF to 13,800 SF over the quarter. One VACANCY 11.5% 12.5%
building was under construction in the E Fort Bend/Sugar Land submarket in Q4
NET ABSORPTION 14,155 3,848
2018 and it delivered in January 2019. The new 38,600-SF two-story medical office
building located at 7619 Branford Place, is 10% leased. RENTAL RATE $29.10 $29.41
Industrial Market*
INDUSTRIAL
The average industrial vacancy rate decreased 170 basis points from 6.2% to 4.5%
VACANCY 6.2% 4.5%
over the quarter. The submarket recorded 473,448 SF of positive net absorption
during Q4 2018, down from the 656,098 SF of positive net absorption recorded NET ABSORPTION 656,098 473,448
in Q3 2018. The average quoted rental rate rose marginally over the quarter from $6.84 $6.99
RENTAL RATE
$6.84 per SF to $6.99 per SF. Over 1M SF of industrial space is under construction.
The largest project under construction is a 477,355-SF speculative distribution
center located in the Southwest Commerce Center in Missouri City, TX. Trammell
RETAIL
Crow Company has 4 buildings currently under construction in Park8Ninety that are
scheduled to deliver in Q2 2019. Dollar Tree recently announced plans to build a 1.2M VACANCY 4.1% 4.9%
SF distribution center in Rosenberg. Construction is scheduled to commence this NET ABSORPTION 331,995 (37,812)
Spring.
RENTAL RATE $22.21 $23.14
Retail Market Data Source: CoStar Property
The average asking rental rate for the Fort Bend retail submarket increased to $23.14
per SF in Q4 2018 from $22.21 per SF in Q3 2018. The submarket recorded 37,812 * For the purpose of this report, the geographical boundaries
SF of negative net absorption in Q4 2018, and the vacancy rate increased by 80 bps previously used for the Fort Bend industrial submarket have
over the quarter. Two properties totaling 71,500 SF delivered during Q4 2018 and been updated to include buildings that are typically considered
there are currently ten properties containing 163,400 SF under construction. The by our clients when they are seeking locations in the Fort Bend/
largest project is the 28,500-SF Rivergate Plaza located in Missouri City, TX. The Sugar Land and Missouri City areas.
shopping center is expected to be completed in May 2019.
Representative Properties FORT BEND TEAM
Land
Kolbe Curtice
Managing Director | Fort Bend
±1.58-AC COMMERCIAL PAD SITE ROSENBERG CORNER LOT
Master-Planned Community Pad Site 13,500-SF Lot for Commercial Development 281 494 4769
Hwy 90A, Sugar Land, TX Hwy 90A & Hwy 36, Rosenberg, TX kolbe.curtice@colliers.com
Office
Jim Pratt
Principal | Fort Bend
SUGAR LAND MEDICAL OFFICE THE OFFICES AT LAKE POINTE 713 830 2147
Office Space for Lease Office Condominium for Lease jim.pratt@colliers.com
1435 Hwy 6, Sugar Land, TX 1415 Hwy 6 S, Ste A-300, Sugar Land, TX
Retail
Barkley Peschel
Senior Vice President | Fort Bend
LEXINGTON SQUARE THE SHOPPES AT SIENNA PLANTATION 281 242 2300
Retail/Office Space for Lease Retail Space for Lease barkley.peschel@colliers.com
16525 Lexington Blvd, Sugar Land, TX Hwy 6/Sienna Plantation, Missouri City, TX
Industrial
Jason Scholtz
Vice President | Fort Bend
13340 S GESSNER ROAD 24610 FRANZ ROAD 281 269 3444
6,000-SF Warehouse/Office for Sale Redevelopment / Sale Leaseback jason.scholtz@colliers.com
13340 S Gessner Rd, Missouri City, TX 24610 Franz Rd, Katy, TX
Colliers International | Fort Bend
15999 City Walk, Suite 250
Sugar Land, Texas 77479
+1 281 494 4769
Copyright © 2018 Colliers International
The information contained herein has been obtained from sources deemed reliable. While colliers.com/sugarland
every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No
responsibility is assumed for any inaccuracies. Readers are encouraged to consult their
2
professional advisors prior to acting on any of the material contained in this report.
North American Research & Forecast Report | Q4 2014 | Office Market Outlook | Colliers International
