E Fort Bend Commercial Real Estate Trends

1. E Fort Bend Commercial Real Estate Trends
Submarket Snapshot
FORT BEND
Q3 2020
Lisa Bridges Director of Market Research | Houston
Office Market
The Fort Bend office submarket posted 57,403 SF of positive net absorption in
Q3 2020, up from the 129,161 SF of negative net absorption recorded in Q2. The
average vacancy rate decreased marginally to 13.5% from 13.6% over the quarter.
The average quoted rental rate dropped from $30.39 to $28.44 per SF, and leasing
activity decreased over the quarter by 42%. 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.
Medical Office Market
The average quoted rental rate increased over the quarter from $27.74 to $28.33 per
SF. The average vacancy rate rose 50 bps from 15.3% in Q2 2020 to 15.8% in Q3
2020. Leasing activity decreased by 80%. One 12,000-SF building was completed
and added to inventory during Q3 2020. Currently, there are no medical office
buildings over 10,000 SF under construction in the submarket.
Industrial Market*
Although the submarket recorded 120,460 SF of positive net absorption during Q3
2020, vacancy increased due to the completion of three new buildings that were
added to the existing inventory. The average quoted rental rate rose over the quarter
from $8.20 per SF to $8.30 per SF. Currently, there are seventeen buildings with
1,095,700 SF of industrial space under construction. The largest project is the
326,800 SF speculative industrial warehouse located in the Sugar Land Crossroads
development located at Dairy Ashford and West Airport, in Sugar Land, TX.
Retail Market
The average asking rental rate for the Fort Bend retail submarket increased from
$23.12 per SF in Q2 2020 to $24.08 per SF in Q3 2020. The submarket recorded
61,221 SF of negative net absorption in Q3 2020, and the vacancy rate increased
from 6.9% to 7.6%. Four retail properties totaling 80,165 SF are currently under
construction, the largest being a 30,750-SF building in Tang City Plaza on Highway
6 in Stafford. The buildings are scheduled to deliver in Q4 2020. One 49,300-SF
building delivered during Q3 2020.
Market
Indicators Q2 2020 Q3 2020
OFFICE
VACANCY 13.6% 13.5%
NET ABSORPTION -129,161 57,403
RENTAL RATE $30.39 $28.44
MEDICAL OFFICE
VACANCY 15.3% 15.8%
NET ABSORPTION 4,108 1,875
RENTAL RATE $27.74 $28.33
INDUSTRIAL
VACANCY 9.4% 10.3%
NET ABSORPTION 105,786 120,460
RENTAL RATE $8.20 $8.30
RETAIL
VACANCY 6.9% 7.6%
NET ABSORPTION -3,219 -61,221
RENTAL RATE $23.12 $24.08
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 © 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
colliers.com/sugarland
Representative Properties
10 TO 40 ACRES FOR DEVELOPMENT
HIGHWAY 6 FRONTAGE
11923 Highway 6, Fresno, TX
THREE SUGAR CREEK
Class “A” Office Space for Lease
3 Sugar Creek Center Blvd, Sugar Land, TX
2ND GEN END CAP RESTAURANT
4,401-SF Space in Lexington Square
16535 Lexington Blvd, Sugar Land, TX
GILLINGHAM DISTRIBUTION CENTER, PH II
Proposed 104,000-SF New Construction
1621 Gillingham Ln, Sugar Land, TX
346-ACRE DEVELOPMENT SITE
SEC SH 36 & Spur 10, Rosenberg, TX
3,200-SF TURN-KEY OFFICE SUITE
3550 FM 1092/Murphy Rd Near Hwy 6
Missouri City, TX
22,500-SF OFFICE/FLEX FACILITY
Tilt-wall Single Tenant Flex Building
9918 Brooklet Dr, Sugar Land, TX
WEST INDUSTRIAL PLACE
New Construction Sugar Land Business Park
1350 Industrial Blvd, Sugar Land, TX
Kolbe Curtice, CCIM, CLS
Managing Director | Fort Bend
281 494 4769
kolbe.curtice@colliers.com
Jim Pratt
Principal | Houston
713 830 2147
jim.pratt@colliers.com
Barkley Peschel, CCIM
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

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