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Q3 2013 Fort Bend Submarket Snapshot


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Q3 2013 Fort Bend Submarket Snapshot

  1. 1. Q3 2013 | SUBMARKET SNAPSHOT Industrial 3Q12 3Q13 VACANCY 7.4% 5.6% ABSORPTION -59,000 29,200 RENTAL RATE $5.86 $6.58 Retail 3Q12 3Q13 VACANCY 6.8% 5.0% ABSORPTION -5,084 35,800 RENTAL RATE $19.44 $17.21 Office 3Q12 3Q13 VACANCY 30.5% 26.8% ABSORPTION 28,200 81,100 RENTAL RATE $25.08 $24.92 OFFICE MARKET The Fort Bend office submarket posted 81,124 SF of positive net absorption in the third quarter of 2013, bringing the year-to- date total to 104,612 SF. The average vacancy rate decreased to 26.8% from 30.5% in Q3 2012 and the average quoted rental rate decreased slightly to $24.92 from $25.08 per SF, however, on a quarterly basis increased 0.8% from $24.71 per SF. Year- to-date leasing activity reached 390,000 SF. Texas Instruments is currently constructing a new 165,000-SF office building which is scheduled to deliver during first quarter 2014. MEDICAL OFFICE MARKET Fort Bend's medical office average vacancy rate increased between quarters by 50 basis points (bps) from 7.2% to 7.7%, but decreased 140 bps from 9.1% in Q3 2012. The average quoted rental rate increased 0.5% from $23.60 to $23.71 per SF between quarters and decreased 2.4% from $24.28 per SF in Q3 2012. The submarket posted 6,551 SF of negative net absorption in the third quarter. Empire Commercial Developers will construct a 56,000-SF medical office building with a 3-story garage in Telfair for a group of doctors. INDUSTRIAL MARKET Year-to-date, the Fort Bend industrial submarket has absorbed 312,000 SF. The industrial average vacancy rate decreased to 5.6% from 7.4% in Q2 2012, and from 5.8% in Q2 2013. The quoted average rental rate for industrial space increased from to $6.58 from $5.80 per SF NNN between quarters. No new buildings were delivered during the third quarter, and there is one 27,300-SF building under construction. RETAIL MARKET Fort Bend's retail market posted 35,800 SF of positive net absorption in the third quarter, bringing the year-to-date total to 344,500 SF. The average retail vacancy rate for all product types remained at 5.0%. Third quarter leasing activity reached 144,900 SF, and most of the leases signed were renewals. Two buildings totaling 41,900 SF were added to inventory during the third quarter. SUBMARKET SNAPSHOT E. FORT BEND COMMERCIAL REAL ESTATE TRENDS E. Fort Bend Market Indicators Medical Office 3Q12 3Q13 VACANCY 9.1% 7.7% ABSORPTION -24,162 -6,550 RENTAL RATE $24.28 $23.71