Q3 2019 | E Fort Bend Commercial Real Estate Trends

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Office Market

The Fort Bend office submarket posted 19,517 SF of positive net absorption in Q3 2019. The average vacancy rate remained steady at 12.1%. The average quoted rental rate increased from $28.15 to $28.25 per SF. Leasing activity decreased over the quarter by 47%. One 27,000-SF office building is currently under construction on University Blvd. The property known as The Marcel District is scheduled to deliver in December 2019.

2019_Q3_ Fort Bend_Market Indicators

Medical Office Market

The average quoted rental rate increased slightly over the quarter from $28.08 to $28.16 per SF. The average vacancy rate rose 70 bps from 13.2% in Q2 2019 to 13.9% in Q3 2019. Leasing activity declined by 10% over the quarter. Three buildings totaling 136,190 SF are currently under construction. The largest of the three is an 87,500-SF, 100% pre-leased medical office condo located at 800 Bonaventure Way.

Industrial Market*

Although the submarket recorded 241,800 SF of positive net absorption during Q3 2019, vacancy still increased due to the completion of four new buildings that were added to inventory. The addition of 668,382 SF of new inventory increased the average industrial vacancy rate 130 basis points, rising from 5.5% to 6.8%. The average quoted rental rate rose 1.5% over the quarter from $7.45 per SF to $7.56 per SF. Currently, there are 26 buildings with 1.7M SF of industrial space under construction. The largest project is a 248,930-SF speculative industrial warehouse located in the Waypoint Business Park on S Sam Houston Parkway in Missouri City, TX.  

Retail Market 

The average asking rental rate for the Fort Bend retail submarket decreased 1% from $23.01 per SF in Q2 2019 to $22.79 per SF in Q3 2019. The submarket recorded 74,086 SF of negative net absorption in Q3 2019, increasing the vacancy rate from 5.2% to 5.9%. Seven properties totaling 179,261 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

   
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18.3 AC DEVELOPMENT TRACT
Residential Development Site
Blaisdale Rd at FM 359, Richmond, TX 77406

  Q3_2019_FortBend_Land_2

42 AC DEVELOPMENT SITE &
1 TO 5 AC PAD SITES    

FM 359 Rd, Richmond, TX 77406

Office

   
Q3_2019_FortBend_Office_1

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

  Q3_2019_FortBend_Office_2

6,246 SF MULTI-PURPOSE BUILDING
Office Space with Residence for Sale
4811 Sugar Grove Blvd, Stafford, TX 77477

Retail

   

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LEXINGTON SQUARE
Retail/Office Space For Lease
16525 Lexington Blvd, Sugar Land, TX 77479

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THE SHOPPES AT SIENNA PLANTATION
1,465 SF End Cap Retail Space for Lease
Hwy 6/Sienna Plantation, Missouri City, TX 77459

Industrial

   

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10749 CASH ROAD
40,000 SF Warehouse/Office for Lease
Freeport Southwest Business Park Missouri City, TX 77477

 

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NEWLY CONSTRUCTED WAREHOUSE
±20,036 SF Warehouse/Office for Lease
6911 Brasada Dr, Houston, TX 77085

 

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

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Q3 2019 | E Fort Bend Commercial Real Estate Trends

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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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