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Q2 2020 | E Fort Bend Commercial Real Estate Trends


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E Fort Bend Commercial Real Estate Trends

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Q2 2020 | E Fort Bend Commercial Real Estate Trends

  1. 1. E Fort Bend Commercial Real Estate Trends Submarket Snapshot FORT BEND Q2 2020 Lisa Bridges Director of Market Research | Houston Office Market The Fort Bend office submarket posted 31,309 SF of negative net absorption in Q2 2020. The average vacancy rate increased to 11.8% from 10.3% over the quarter. The average quoted rental rate dropped from $30.97 to $30.39 per SF and leasing activity decreased over the quarter by 40%. There is one building totaling 56,000 SF under construction - an expansion for the Houston Community College System located on W Airport Blvd. The building is expected to deliver in Q3 2020. Medical Office Market The average quoted rental rate increased over the quarter from $27.63 to $28.02 per SF. The average vacancy rate rose 70 bps from 14.6% in Q1 2020 to 15.3%. Leasing activity remained steady over the quarter, totaling 18,602 SF. Currently, there are no buildings over 10,000 SF under construction in the submarket. Industrial Market* Although the submarket recorded 61,451 SF of positive net absorption during Q2 2020, vacancy remained at 9.4% due to the completion of a new building that was added to the existing inventory. The average quoted rental rate rose over the quarter from $8.11 per SF to $8.20 per SF. Currently, there are seventeen buildings with 1,049,600 SF of industrial space under construction. The largest project is the 228,900 SF speculative industrial distribution warehouse located in the Stafford Crossing development located at Highway 59 (Highway 69) and Highway 90, in Stafford, TX. Retail Market The average asking rental rate for the Fort Bend retail submarket increased from $23.06 per SF in Q1 2020 to $23.23 per SF in Q2 2020. The submarket recorded 15,699 SF of negative net absorption in Q2 2020, increasing the vacancy rate from 6.4% to 6.9%. Five properties totaling 110,900 SF are currently under construction. The largest project includes two 30,750 SF buildings in Tang City Plaza on Highway 6 in Stafford, TX. The buildings are scheduled to deliver in Q3 2020. Market Indicators Q1 2020 Q2 2020 OFFICE VACANCY 10.3% 11.8% NET ABSORPTION 24,416 -31,309 RENTAL RATE $30.97 $30.39 MEDICAL OFFICE VACANCY 14.6% 15.3% NET ABSORPTION 34,065 -1,939 RENTAL RATE $27.63 $28.02 INDUSTRIAL VACANCY 9.4% 9.4% NET ABSORPTION 431,386 61,451 RENTAL RATE $8.11 $8.20 RETAIL VACANCY 6.4% 6.9% NET ABSORPTION -15,303 -15,699 RENTAL RATE $23.06 $23.23 Data Source: CoStar Property * For the purpose of this report, the geographical boundaries for the Fort Bend industrial submarket include buildings that are typically considered by our clients when they are seeking locations in the Fort Bend/Sugar Land and Missouri City areas.
  2. 2. 2 North American Research & Forecast Report | Q4 2014 | Office Market Outlook | Colliers International Copyright © 2020 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 Representative Properties Land 10 TO 40 ACRES FOR DEVELOPMENT HIGHWAY 6 FRONTAGE 11923 Highway 6, Fresno, TX Office THREE SUGAR CREEK Class “A” Office Space for Lease 3 Sugar Creek Center Blvd, Sugar Land, TX Retail 2ND GEN END CAP RESTAURANT 4,401-SF Space in Lexington Square 16535 Lexington Blvd, Sugar Land, TX Industrial HIGH-BAY WAREHOUSES Total ±71,438 SF on ±4.55 Acres 701 W Sycamore Rd, Fresno, TX 346-ACRE DEVELOPMENT SITE SEC SH 36 & Spur 10, Rosenberg, TX RIVER PARK RIDGE DEVELOPMENT Preleasing Medical/Professional Office 2819 Imperia Dr, Sugar Land, TX RETAIL/OFFICE SPACE AVAILABLE 1,450 - 2,145 SF at Ashford Lakes 11420 Dairy Ashford, Sugar Land, TX GILLINGHAM DISTRIBUTION CENTER, PH II Proposed 104,000 SF New Construction 1621 Gillingham Ln, Sugar Land, TX Kolbe Curtice, CCIM, CLS Managing Director | Fort Bend 281 494 4769 Jim Pratt Principal | Houston 713 830 2147 Barkley Peschel, CCIM Senior Vice President | Fort Bend 281 242 2300 Jason Scholtz Vice President | Fort Bend 281 269 3444 FORT BEND TEAM Kimberly Lenardson Vice President | Houston 713 830 2186
  3. 3. Our philosophy revolves around the fact that the best possible results come from linking our global enterprise with local advisors who understand your business, your market, and how to integrate real estate into a successful business strategy. C O L L I E R S I N T E R N A T I O N A L G L O B A L L O C A T I O N S COMMERCIAL REAL ESTATE SECTORS REPRESENTED OFFICE INDUSTRIAL LAND RETAIL HEALTHCARE MULTIFAMILY HOTEL $129BTRANSACTION VALUE 2BSF UNDER MANAGEMENT $3.5BIN REVENUE 443OFFICES 18,700PROFESSIONALS 430ACCREDITED MEMBERS 68COUNTRIES SIOR ADVANTAGE Colliers International (NASDAQ, TSX: CIGI) is a leading real estate professional services and investment management company. With operations in 68 countries, our more than 15,000 enterprising professionals work collaboratively to provide expert advice to maximize the value of property for real estate occupiers, owners and investors. For more than 25 years, our experienced leadership, owning approximately 40% of our equity, has delivered compound annual investment returns of almost 20% for shareholders. In 2019, corporate revenues were more than $3.0 billion ($3.5 billion including affiliates), with $33 billion of assets under management in our investment management segment. Learn more about how we accelerate success at, Twitter @Colliers or LinkedIn. Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice to accelerate the success of its clients. Colliers has been ranked among the top 100 global outsourcing firms by the International Association of Outsourcing Professionals for 13 consecutive years, more than any other real estate services firm. Colliers is ranked the number one property manager in the world by Commercial Property Executive for two years in a row. PROPERTY POSITIONING & MARKETING REAL ESTATEINVESTMENT VALUATION& ADVISORY CORPORATE SOLUTIONS MANAGEMENT REALESTATE REPRESENTATION LANDLORD REPRESENTATION TENANT LOCA TION INTELLIGENCE MA RKET RESEARCH& CAPITAL MARKETS PROJECT MANAGEMENT COLLIERS SPECIALIZATIONS and REAL ESTATE SERVICE REPRESENTATION DATACENTERS HE ALTHCARE HOTELS & HOSPITALITY SERVICES IND USTRIAL LAND HOUSING&MULTIFAMILY SER VICES MARINA, LEISURE & GOLF COURSE OFFICE RETAIL SPECIALPURPOSE