Q1 2018 Ft Bend Market Indicators

Office Market

The Fort Bend office submarket posted 177,000 SF of negative net absorption in Q1 2018. This was primarily due to Telecheck closing its Sugar Creek on the Lake offices. The average vacancy rate increased 330 basis points (bps) from 8.4% to 11.7% over the quarter. The average quoted rental rate decreased between quarters from $25.14 to $24.92 per SF. Leasing activity, which includes renewals, increased slightly over the quarter from 87,000 SF to 106,000 SF. There are currently two buildings under construction; the largest of the two being a 23,530-SF, two-story general purpose office building located at 12002 S Highway 6.

Medical Office Market

The average quoted rental rate decreased over the quarter from $29.51 to $29.20 per SF. The average vacancy rate increased 70 bps from 10.4% to 11.1% over the quarter mostly due to new construction. Currently, there are two medical office buildings under construction in the E Fort Bend/Sugar Land submarket. The largest project is a 38,600-SF, two-story medical office building located at 7619 Branford Place, which is expected to deliver in August 2018. Two medical office buildings delivered during Q1 2018, one delivered partially leased causing vacancy and absorption to increase over the quarter.

Industrial Market*

The average industrial vacancy rate increased marginally over the quarter. The submarket recorded 66,453 SF of negative net absorption during Q1 2018, down considerably from the 119,745 SF of positive net absoption in Q4 2017. The average quoted rental rate increased from $6.27 per SF to $6.71 per SF NNN over the quarter. Leasing activity, which includes renewals, fell sharply from 767,946 SF in Q4 2017 to 178,656 SF in Q1 2018. Approximately 610,000 SF is currently under construction and there was no new construction delivered during the first quarter.

Retail Market 

The average asking rental rate for the Fort Bend retail submarket increased 6.2% between quarters from $19.80 per SF to $21.03 per SF. The submarket recorded 72,537 SF of positive net absorption in Q1 2018 and the vacancy rate decreased by 20 bps over the quarter. At the end of the quarter, 504,500 SF of retail space was under construction. The largest project is The Village at Riverstone, a 165,000-SF Krogeranchored center located along University Boulevard at LJ Parkway. The shopping center is scheduled for completion in August 2018.

 Featured Properties

Land

TFAerial_1

TELFAIR/HWY59 COMMERCIAL TRACTS
+/- 187 Acres for Commercial Development
Hwy 59 & University Blvd, Sugar Land, TX

Stafford Development Tract

STAFFORD DEVELOPMENT TRACT 
23 Acres for Commercial Development
Hwy 90A & Southwest Fwy, Stafford, TX 

Office

Three Sugar Creek

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

14140 Southwest

14140 SOUTHWEST FREEWAY
Office Space for Lease
14140 Southwest Fwy, Sugar Land, TX

Retail 

Lexington Square

LEXINGTON SQUARE
Retail/Office Space for Lease
16525 Lexington Blvd, Sugar Land, TX

Sienna Plantation

THE SHOPPES AT SIENNA PLANTATION
Retail Space for Lease
Hwy 6/Sienna Plantation, Missouri City, TX

Industrial  

Sugarland
SUGAR LAND BUSINESS PARK
+/- 9,937-SF Flex Lease Space
1330 Industrial Blvd, Sugar Land, TX

Mula 13006 IMG 02

13006 MULA LANE
Light Industrial Sale-Leaseback
13006 Mula Ln, Stafford, 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