Q1 2020 | E Fort Bend Commercial Real Estate Trends

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E Fort Bend Commercial Real Estate Trends

Office Market

The Fort Bend office submarket posted 38,962 SF of positive net absorption in Q1 2020. The average vacancy rate decreased to 10.9% from 11.8% over the quarter. The average quoted rental rate increased from $29.55 to $30.97 per SF and leasing activity decreased over the quarter by 72%. There are three buildings totaling 105,300 SF under construction. The largest building under construction is a 56,000-SF expansion for the Houston Community College System, located on W Airport Blvd. The building is expected to deliver in May 2020.

 2020_Q1_FortBend_MarketIndicators_updated

Medical Office Market

The average quoted rental rate decreased over the quarter from $28.00 to $27.61 per SF. The average vacancy rate fell 200 bps to 15.3% from 17.3% in Q4 2019. Leasing activity declined by 28% over the quarter. Currently, there are no properties under construction.

Industrial Market*

Although the submarket recorded 432,086 SF of positive net absorption during Q1 2020, vacancy still increased due to the completion of new buildings that were added to inventory. The addition of the unleased portion (78%) of 1.3M SF of new inventory increased the average industrial vacancy rate 230 basis points, rising from 7.3% to 9.6%. The average quoted rental rate rose over the quarter from $7.76 per SF to $8.10 per SF. Currently, there are 16 buildings with 779,802 SF of industrial space under construction. The largest project is the 199,170-SF speculative industrial warehouse located in the CityPark Logistics Center on S Sam Houston Pky W in Missouri City, TX.  

Retail Market 

The average asking rental rate for the Fort Bend retail submarket increased from $22.02 per SF in Q4 2019 to $23.16 per SF in Q1 2020. The submarket recorded 12,591 SF of negative net absorption in Q1 2020, increasing the vacancy rate from 6.1% to 6.3%. Eight properties totaling 208,395 SF are currently under construction. The largest project is Sienna Crossing Phase III, a 60,000-SF addition that will include Spec’s Wine and 24-Hour Fitness as new tenants. The shopping center is expected to deliver in the first quarter of 2020.

*For the purpose of this report, the geographical boundaries previously used for the Fort Bend industrial submarket have been updated to include buildings that are typically considered by our clients when they are seeking locations in the Fort Bend/Sugar Land and Missouri City areas.

 

Featured Properties

Land

   
2019Q4FortBendSpur10

93.66 AC DEVELOPMENT TRACT 
OFF HIGHWAY 59

Spur 10 & Anton Stade
Rosenberg, TX 77471

   2019Q4FortBend346 AC Rosenberg

346 AC DEVELOPMENT SITE    
SEC SH 36 & Spur 10
Rosenberg, TX 77471

Office

   

Q3_2019_FortBend_Office_1

THREE SUGAR CREEK
Office Space for Lease
3 Sugar Creek Center Blvd
Sugar Land, TX 77478

 

2019_Q4_FortBend_RIVERPARKRIDGEDEVELOPMENT

RIVER PARK RIDGE DEVELOPMENT
Preleasing Medical/Professional Office
2819 Imperia Dr
Sugar Land, TX 77479

Retail

   

 2019Q4FortBendLexingtonSquare

2ND GEN END CAP RESTAURANT
4,401 SF Space in Lexington Square
16535 Lexington Blvd
Sugar Land, TX 77479

 

2019Q4FortBendrestaurantrosenberg

6,262 SF FREESTANDING RESTAURANT
Highway 90 Frontage in Old Rosenberg
4511 Ave H/Hwy 90
Rosenberg, TX 77471

Industrial

   

2019Q4FortBendHighBayWarehouse

HIGH-BAY WAREHOUSES
Total ±71,438 SF on ±4.55 Acres
701 W Sycamore Rd
Fresno, TX 77545

  2019Q4FortBendSite Outlined


GILLINGHAM DISTRIBUTION CENTER, PH II
Proposed 104,000 SF New Construction
1621 Gillingham Ln
Sugar Land, TX 77478

 

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

FortBend_SearchResultImage_1024x972

Q1 2020 | E Fort Bend Commercial Real Estate Trends

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Related Experts

Lisa Bridges

Director of Market Research | Houston

Houston

Lisa joined Colliers in 2010 as Director of Market Research bringing 26 years of commercial real estate experience to the firm. Lisa initiates proactive market research projects to further the business goals of the company. She writes and prepares 29 market reports annually which include 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 in support of 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 both existing and potential clients.

Lisa serves on the Colliers International Editorial Board, the Colliers International U.S. Research Council, is a Colliers Center of Excellence team member and is a recipient of the Colliers International Researcher of the Year Award.

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 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.

Prior to entering commercial real estate in 1985, Jim served as a project manager on several multi-million dollar commercial construction projects for W.S. Bellows Construction Corporation.  His educational background in architecture has also proven invaluable in assisting landlords and tenants in the evaluation process involved in site selection.

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Barkley Peschel

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Mr. Peschel is a multi-disciplined commercial real estate advisor with experience in tenant/buyer representation, relocation/expansion, land acquisition/disposition, and economic incentive negotiations.  He spends most of his time on industrial and land transactions, but given the Colliers network and resources, he’s involved in a variety of deal types including office and investments.  He is surrounded by experts who he partners with depending on the deal.  He stays involved in transactions to bring trust to the client. 

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Jason Scholtz

Vice President | Fort Bend

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Jason received his Masters of Business Administration from the C.T. Bauer College of Business at the University of Houston. He also holds a Bachelor of Science in Finance and Real Estate from the University of South Carolina.

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