Q3 2018 Fort Bend Snapshot Market Indicators 2

Office Market

The Fort Bend office submarket posted 90,618 SF of positive net absorption in Q3 2018, a 63% increase from the previous quarter. The average vacancy rate fell 120 basis points (bps) from 11.8% to 10.6% over the quarter and the average quoted rental rate increased 2.5% from $26.04 to $26.69 per SF. One building delivered in Q3, a 20,800-SF two-story office building located in Telfair.

Medical Office Market

The average quoted rental rate increased over the quarter from $28.50 to $28.89 per SF. The average vacancy rate fell 90 bps from 13.2% in Q2 2018 to 12.3% in Q3 2018. Leasing activity increased from 14,686 SF to 78,348 SF over the quarter. One building is under construction in the E Fort Bend/Sugar Land submarket, a 38,600- SF, two-story medical office building located at 7619 Branford Place. The building is 10% pre-leased and is scheduled to deliver in December 2018. 

Industrial Market*

The average industrial vacancy rate decreased 40 basis points over the quarter from 6.7% to 6.3%. The submarket recorded 106,098 SF of positive net absorption during Q3 2018, up from the 89,227 SF of positive net absorption recorded in Q2 2018. The average quoted rental rate rose marginally over the quarter. 60,000 SF of industrial space is under construction and 900,000 SF delivered during the quarter. The largest project recently completed is the 550,000-SF distribution center for Best Buy. 

Retail Market 

The average asking rental rate for the Fort Bend retail submarket increased to $22.80 per SF in Q3 2018 from $22.71 per SF in Q2 2018. The submarket recorded 137,578 SF of positive net absorption in Q3 2018 and the vacancy rate decreased by 30 bps over the quarter. At the end of the quarter, 410,000 SF of retail space was under construction. The largest project is The Village at Riverstone, a 191,500-SF Kroger-anchored neighborhood shopping center located along University Boulevard at LJ Parkway, which is expected to be completed in December 2018. 

*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

158 AC Hwy 90 Sugarlad2

±1.58-AC COMMERCIAL PAD SITE
Master-Planned Community Pad Site
Hwy 90A, Sugar Land, TX

Stafford Development Tract

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

Office

1435 Hwy 6 Sugar Land TX 2

SUGAR LAND MEDICAL OFFICE
Office Space for Lease
1435 Hwy 6, Sugar Land, TX

14140 Southwest

14140 SOUTHWEST FREEWAY
Office for Sale and 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  

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

24610 Franz Road Katy TX

24610 FRANZ ROAD
Redevelopment / Sale Leaseback
24610 Franz Rd, Katy, 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