Q4 2019 | 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 7,992 SF of negative net absorption in Q4 2019. The average vacancy rate increased from 11.8% to 12.0% over the quarter. The average quoted rental rate increased from $28.25 to $29.55 per SF and leasing activity increased over the quarter by 78%. 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.  

2019Q4FortBendMarketIndicators

Medical Office Market

The average quoted rental rate decreased over the quarter from $27.82 to $27.59 per SF. The average vacancy rate rose 170 bps from 13.8% in Q3 2019 to 15.5% in Q4 2019. Leasing activity declined by 34% over the quarter. Four buildings totaling 136,190 SF are currently under construction. The largest of the three is a 100% preleased, 87,500-SF medical office condo located at 800 Bonaventure Way.

Industrial Market*

Although the submarket recorded 144,317 SF of positive net absorption during Q4 2019, vacancy still increased due to the completion of two new buildings that were added to inventory. The addition of the unleased portion of 479,205 SF of new inventory helped to increase the average industrial vacancy rate 100 basis points, rising from 6.4% to 7.4%. The average quoted rental rate rose over the quarter from $7.38 per SF to $7.51 per SF. Currently, there are 19 buildings with 1.4M SF of industrial space under construction. The largest project is the 290,373-SF speculative industrial warehouse located in the Waypoint Business Park on Cravens Rd in Missouri City, TX.  

Retail Market 

The average asking rental rate for the Fort Bend retail submarket increased from $22.27 per SF in Q3 2019 to $22.53 per SF in Q4 2019. The submarket recorded 18,665 SF of negative net absorption in Q4 2019, increasing the vacancy rate from 5.9% to 6.3%. Seven properties totaling 174,935 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

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Q4 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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