E Fort Bend Commercial Real Estate Trends
Office Market
The E Fort Bend office submarket contains 5.9M SF of office space. The submarket posted 17,898 SF of negative net absorption in Q4 2020, down from the 60,338 SF of positive net absorption recorded in Q3. The average vacancy rate increased from 13.4% to 14.5% over the quarter. The average quoted rental rate rose from $28.44 to $31.32 per SF, and leasing activity decreased over the quarter by 35%. One building totaling 56,000 SF delivered during the quarter - an expansion for the Houston Community College System located on W Airport Blvd. There are no office buildings currently under construction in the submarket.
*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.
Medical Office Market
The Fort Bend MOB submarket recorded 11,752 SF of positive net absorption in Q4 2020. The average quoted rental rate increased over the quarter from $27.82 to $27.88 per SF. The average vacancy rate decreased 60 bps from 16.4% in Q3 2020 to 15.8% in Q4 2020. There are no medical office buildings over 10,000 SF under construction in the submarket.
Industrial Market*
The Fort Bend/Sugar Land industrial submarket contains 33.4M SF of industrial space and currently has 5.9M SF of available space. The submarket recorded 441,660 SF of positive net absorption during Q4 2020, pushing the year-end 2020 total to 1.2M SF. Vacancy decreased from 9.8% to 8.4% over the quarter, and the average asking NNN rental rate for all property types rose from $8.21 per SF to $8.34 per SF. There are 21 buildings with 2,500,557 SF of industrial space under construction and an additional 3.7M SF of proposed development. The largest building under construction is a 1.1M SF Amazon fulfillment center located in the Fort Bend Business Park.
Retail Market
The Fort Bend retail submarket contains 14.7M SF of retail space and currently has 1.3M SF of available space. The submarket recorded 19,281 SF of positive net absorption in Q4 2020, and the vacancy rate remained steady at 7.6%. The average asking rental rate for the Fort Bend retail submarket increased from $24.08 per SF in Q3 2020 to $24.23 per SF in Q4 2020. Three retail properties totaling 88,110 SF are currently under construction and an additional 178,376 SF is proposed.
Featured Properties
| 10 TO 40 ACRES FOR DEVELOPMENT HIGHWAY 6 FRONTAGE 11923 Highway 6 Fresno, TX 77545 |
346 AC DEVELOPMENT SITE SEC SH 36 & Spur 10 Rosenberg, TX 77471 |
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| THREE SUGAR CREEK Class “A” Office Space for Lease 3 Sugar Creek Center Blvd Sugar Land, TX 77478 |
9,200-SF OFFICE INVESTMENT SALE 3550 FM 1092 / Murphy Rd Near Hwy 6 Missouri City, TX 77459 |
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| WEATHERFORD FARMS Three-Building Industrial Development 13223 Murphy Road Stafford, TX 77477 |
INDUSTRIAL DEVELOPMENT TRACT 3.8 Acres in Sugar Land Business Park West Airport Boulevard Sugar Land, TX 77478 |
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| GILLINGHAM DISTRIBUTION CENTER, PH II Proposed 104,000 SF New Construction 1621 Gillingham Ln Sugar Land, TX 77478 |
WEST INDUSTRIAL PLACE New Construction Sugar Land Business Park 1350 Industrial Blvd Sugar Land, TX 77478 |