E Fort Bend Commercial Real Estate Trends

1. E Fort Bend Commercial Real Estate Trends
Submarket Snapshot
FORT BEND
Q3 2019
Lisa Bridges Director of Market Research | Houston
Office Market
The Fort Bend office submarket posted 19,517 SF of positive net absorption in Q3
2019. The average vacancy rate remained steady at 12.1%. The average quoted rental
rate increased from $28.15 to $28.25 per SF. Leasing activity decreased over the
quarter by 47%. One 27,000-SF office building is currently under construction on
University Blvd. The property known as The Marcel District is scheduled to deliver in
December 2019.
Medical Office Market
The average quoted rental rate increased slightly over the quarter from $28.08 to
$28.16 per SF. The average vacancy rate rose 70 bps from 13.2% in Q2 2019 to 13.9%
in Q3 2019. Leasing activity declined by 10% over the quarter. Three buildings totaling
136,190 SF are currently under construction. The largest of the three is an 87,500-SF,
100% pre-leased medical office condo located at 800 Bonaventure Way.
Industrial Market*
Although the submarket recorded 241,800 SF of positive net absorption during
Q3 2019, vacancy still increased due to the completion of four new buildings that
were added to inventory. The addition of 668,382 SF of new inventory increased
the average industrial vacancy rate 130 basis points, rising from 5.5% to 6.8%. The
average quoted rental rate rose 1.5% over the quarter from $7.45 per SF to $7.56
per SF. Currently, there are 26 buildings with 1.7M SF of industrial space under
construction. The largest project is a 248,930-SF speculative industrial warehouse
located in the Waypoint Business Park on S Sam Houston Parkway in Missouri City,
TX.
Retail Market
The average asking rental rate for the Fort Bend retail submarket decreased 1% from
$23.01 per SF in Q2 2019 to $22.79 per SF in Q3 2019. The submarket recorded
74,086 SF of negative net absorption in Q3 2019, increasing the vacancy rate from
5.2% to 5.9%. Seven properties totaling 179,261 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.
Market
Indicators Q2 2019 Q3 2019
OFFICE
VACANCY 12.1% 12.1%
NET ABSORPTION -77,579 19,517
RENTAL RATE $28.15 $28.25
MEDICAL OFFICE
VACANCY 13.2% 13.9%
NET ABSORPTION 18,382 -11,389
RENTAL RATE $28.08 $28.16
INDUSTRIAL
VACANCY 5.5% 6.8%
NET ABSORPTION 9,106 241,800
RENTAL RATE $7.45 $7.56
RETAIL
VACANCY 5.2% 5.9%
NET ABSORPTION 8,559 -74,086
RENTAL RATE $23.01 $22.79
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 North American Research & Forecast Report | Q4 2014 | Office Market Outlook | Colliers International
Copyright © 2019 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
Representative Properties
Land
18.3 AC DEVELOPMENT TRACT
Residential Development Site
Blaisdale Rd at FM 359, Richmond, 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
10749 CASH ROAD
40,000-SF Warehouse/Office for Lease
Freeport Southwest Business Park
Missouri City, TX
42 AC DEVELOPMENT SITE &
1 TO 5 AC PAD SITES
FM 359 Rd, Richmond, TX
6,246-SF MULTI-PURPOSE BUILDING
Office Space with Residence for Sale
4811 Sugar Grove Blvd, Stafford, TX
THE SHOPPES AT SIENNA PLANTATION
1,465 SF End Cap Retail Space for Lease
Hwy 6/Sienna Plantation, Missouri City, TX
NEWLY CONSTRUCTED WAREHOUSE
±20,036-SF Warehouse/Office for Lease
6911 Brasada Dr, Houston, TX
Kolbe Curtice
Managing Director | Fort Bend
281 494 4769
kolbe.curtice@colliers.com
Jim Pratt
Principal | Fort Bend
713 830 2147
jim.pratt@colliers.com
Barkley Peschel
Senior Vice President | Fort Bend
281 242 2300
barkley.peschel@colliers.com
Jason Scholtz
Vice President | Fort Bend
281 269 3444
jason.scholtz@colliers.com
FORT BEND TEAM