Q4 2018 | E Fort Bend Commercial Real Estate Trends

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Q4 2018 Fort Bend Market Indicators

Office Market

The Fort Bend office submarket posted 11,031 SF of positive net absorption in Q4 2018, an 85% decrease from the previous quarter. The average vacancy rate fell 10 basis points (bps) from 10.7% to 10.6% over the quarter and the average quoted rental rate decreased slightly by 1.0% from $26.69 to $26.42 per SF. There are no buildings currently under construction.

Medical Office Market

The average quoted rental rate increased over the quarter from $29.10 to $29.41 per SF. The average vacancy rate rose 100 bps from 11.5% in Q3 2018 to 12.5% in Q4 2018. Leasing activity decreased from 81,400 SF to 13,800 SF over the quarter. One building was under construction in the E Fort Bend/Sugar Land submarket in Q4 2018 and it delivered in January 2019. The new 38,600-SF two-story medical office building located at 7619 Branford Place, is 10% leased. 

Industrial Market*

The average industrial vacancy rate decreased 170 basis points from 6.2% to 4.5% over the quarter. The submarket recorded 473,448 SF of positive net absorption during Q4 2018, down from the 656,098 SF of positive net absorption recorded in Q3 2018. The average quoted rental rate rose marginally over the quarter from $6.84 per SF to $6.99 per SF. Over 1M SF of industrial space is under construction. The largest project under construction is a 477,355-SF speculative distribution center located in the Southwest Commerce Center in Missouri City, TX. Trammell Crow Company has 4 buildings currently under construction in Park8Ninety that are scheduled to deliver in Q2 2019. Dollar Tree recently announced plans to build a 1.2M SF distribution center in Rosenberg. Construction is scheduled to commence this Spring. 

Retail Market 

The average asking rental rate for the Fort Bend retail submarket increased to $23.14 per SF in Q4 2018 from $22.21 per SF in Q3 2018. The submarket recorded 37,812 SF of negative net absorption in Q4 2018, and the vacancy rate increased by 80 bps over the quarter. Two properties totaling 71,500 SF delivered during Q4 2018 and there are currently ten properties containing 163,400 SF under construction. The largest project is the 28,500-SF Rivergate Plaza located in Missouri City, TX. The shopping center is expected to be completed in May 2019. 

*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.

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Featured Properties

Land

158 AC Hwy 90 Sugarlad2

±1.58 AC COMMERCIAL PAD SITE
Master-Planned Community Pad Site
Hwy 90A, Sugar Land, TX 77498

Aerial

ROSENBERG CORNER LOT 
13,500 SF Lot for Commercial Development
Hwy 90A & Hwy 36, Rosenberg, TX 77471 

Office

1435 Hwy 6 Sugar Land TX 2

SUGAR LAND MEDICAL OFFICE
Office Space For Lease
1435 Hwy 6, Sugar Land, TX 77478

Main Image 1415 Hwy 6 S Ste A300

THE OFFICES AT LAKE POINTE
Office Condominium For Lease
1415 Hwy 6 S, Ste A-300, Sugar Land, TX 77478

Retail 

Lexington Square

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

Sienna Plantation

THE SHOPPES AT SIENNA PLANTATION
Retail Space for Lease
Hwy 6/Sienna Plantation, Missouri City, TX 77459

Industrial  

Bldg Image

13340 S GESSNER ROAD
6,000 SF Warehouse/Office For Sale
13340 S Gessner Rd, Missouri City, TX 77489

24610 Franz Road Katy TX

24610 FRANZ ROAD
Redevelopment / Sale Leaseback
24610 Franz Rd, Katy, TX 77493

 

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

Sugar Land Skyline Search Card Image

Q4 2018 | E Fort Bend Commercial Real Estate Trends

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