Q4_2017_FortBend_MarketReport

Office Market

The Fort Bend office submarket posted 68,139 SF of positive net absorption in Q4 2017.  The average vacancy rate fell 130 basis points (bps) from 9.7% to 8.4% over the quarter and decreased 190 bps from 10.3% in Q4 2016.  The average quoted rental rate decreased between quarters from $26.12 to $25.14 per SF.  Leasing activity, which includes renewals, decreased slightly over the quarter.  There is one building under construction located at 13310 University Blvd.  The building is two stories, contains 20,800 SF and is 29.7% pre-leased.

Medical Office Market

The average quoted rental rate increased over the quarter from $28.59 to $29.55 per SF and increased 16% over the year from $25.46 per SF in Q4 2016. The average vacancy rate increased 50 bps from 10.6% to 11.1% over the quarter and increased 70 basis points from 10.4% in Q4 2016.  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,  expected to deliver in March 2018.  The other property is Egrets Landing, a 30,852-SF, two-story medical office building, which is also expected to deliver in March 2018.

Industrial Market*

The average vacancy rate decreased marginally over the quarter and by 130 basis points over the year from 8.5% in Q4 2016.  The submarket recorded 43,092 SF of positive net absorption during Q4 2017, pushing year-end 2017 positive net absorption to over half a million square feet.  Leasing activity increased from 311,443 SF in Q3 2017 to 559,195 SF in Q4 2017.  The average quoted rental rate increased from $6.04 per SF to $6.22 per SF NNN over the quarter.

*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. 

Retail Market 

The average asking rental rate for the Fort Bend retail submarket decreased 4.3% between quarters from $22.99 per SF to $22.00 per SF and increased 2.4% from $21.48 per SF in Q4 2016.  The submarket recorded 124,540 SF of positive net absorption in Q4 2017 and the vacancy rate decreased by 80 bps over the quarter.  At the end of the quarter, 488,000 SF of retail space was under construction.  The largest project is The Village at Riverstone, a 165,000-SF Kroger-anchored 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