E. Fort Bend Commercial Real Estate Trends

1. E. Fort Bend Commercial Real Estate Trends
Submarket Snapshot
FORT BEND
Q2 2016
Lisa Bridges Director of Market Research | Houston
Office Market
The Fort Bend office submarket posted 25,848 SF of negative net absorption in Q2
2016, bringing the mid-year net absorption total to positive 45,536 SF. The average
vacancy rate increased 40 basis points (bps) from 7.6% to 8.0% between quarters,
and decreased 150 bps from 9.5% in Q2 2015. The average quoted rental rate
decreased 1.0% between quarters from $26.41 to $26.15 per SF, and rose 3.6% from
an average rate of $25.25 per SF in Q2 2015. The Offices at Telfair opened opend
during Q2 and currently has 15,000 SF available for lease.
Medical Office Market
The average quoted rental rate remained at $26.33 per SF over the quarter and
increased 4.3% from $25.24 per SF in Q2 2015. The vacancy rate increased 50
basis from 12.2% to 12.7% over the quarter and increased 10 basis points from
12.6% in Q2 2015. Easton Professional, a 25,000-SF medical office building,
delivered during the second quarter. The Exchange at Telfair opened during the
second quarter and has 40,000 SF available for lease.
Industrial Market
The average vacancy rate for the Fort Bend industrial submarket decreased 70 bps
from 3.1% to 2.4% between quarters and fell 170 bps from 4.1% in Q2 2015. The
average quoted rental rate increased 8.8% between quarters from $7.65 per SF
NNN to $8.32 per SF NNN, and increased 22.9% annually from $6.77 per SF in Q2
2015. A new 303,335-SF FeEx distribution facility on S Cravens Rd was completed
in June. A 39,750-SF warehouse located on Industrial Blvd is currently under
construction and scheduled to deliver in August. The building is 50% pre-leased.
Retail Market
The average asking rental rate for the Fort Bend retail submarket decreased 1.4%
between quarters from $19.90 per SF to $19.63 per SF and decreased by 2.7%
from $20.18 per SF in Q2 2015. The submarket recorded 11,582 SF of positive
net absorption in Q2 2016 and the vacancy rate decreased by 50 basis points
over the quarter. River Pointe Center, a 16,200-SF strip center, is currently under
construction and is scheduled to deliver in Q3 2016. The center is 100% pre-leased
and tenants include Mattress Firm, ATT Cellular, Goodwill, Big Salad and a nail salon.
Market Indicators 2Q 2015 2Q 2016
OFFICE
VACANCY 9.5% 8.0%
NET ABSORPTION 29,504 -25.848
RENTAL RATE $25.25 $26.15
MEDICAL OFFICE
VACANCY 12.6% 12.7%
NET ABSORPTION 15,519 15,665
RENTAL RATE $25.24 $26.33
INDUSTRIAL
VACANCY 4.1% 2.4%
NET ABSORPTION 255,833 251,879
RENTAL RATE $6.77 $8.32
RETAIL
VACANCY 4.4% 3.9%
NET ABSORPTION 6,669 11,582
RENTAL RATE $20.18 $19.63
Data Source: CoStar Property

2. 2 North American Research & Forecast Report | Q4 2014 | Office Market Outlook | Colliers International
Copyright © 2016 Colliers International.
The information contained herein has been obtained from sources deemed reliable. While
every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No
responsibility is assumed for any inaccuracies. Readers are encouraged to consult their
professional advisors prior to acting on any of the material contained in this report.
Colliers International | Fort Bend
15999 City Walk, Suite 250
Sugar Land, Texas 77479
+1 281 494 4769
colliers.com/sugarland
FORT BEND TEAM
Kolbe Curtice
Managing Director | Fort Bend
281 494 4769
kolbe.curtice@colliers.com
Jim Pratt
Senior Vice President | Fort Bend
713 830 2147
jim.pratt@colliers.com
Barkley Peschel
Senior Vice President | Fort Bend
281 242 2300
barkley.peschel@colliers.com
Representative Properties
Land
TELFAIR/HWY 59 COMMERCIAL TRACTS
+/- 187 Acres for Commercial Development
Hwy 59 & University Blvd, Sugar Land, TX
Office
THREE SUGAR CREEK
Office Space for Lease
3 Sugar Creek Center Blvd, Sugar Land, TX
Retail
LEXINGTON SQUARE
Retail/Office Space for Lease
16525 Lexington Blvd, Sugar Land, TX
Industrial
GILLINGHAM DISTRIBUTION CENTER
Office/Warehouse for Lease
1601 Gillingham Ln, Sugar Land, TX
TRACTS ADJOINING INTERMODAL CENTER
293 Acres for Commercial Development
W Tavener Rd & Bohacek Rd, Beasley, TX
ROTUNDA BUILDING
Office/Medical Space for Lease
5819 Hwy 6, Missouri City, TX
THE SHOPPES AT SIENNA PLANTATION
Retail Pads for Sale or Ground Lease
State Hwy 6, Missouri City, TX
931 SILVERADO
53,000-SF Commercial Bldg. on 10 Ac. for Sale
931 Silverado Trail, Rosenberg, TX