OFFICE MARKET The Fort Bend office submarket posted 23,725 SF of positive net absorption in the fourth quarter of 2014, pushing the year-end total to 253,876 SF. The average vacancy rate fell 40 basis points (bps) from 13.7% to 13.3% between quarters, and decreased 160 bps from 14.9% in Q4 2013. The average quoted rental rate increased 1.0% from $25.01 to $25.26 per SF between quarters and rose 3.1% from $24.50 per SF in Q4 2013. MEDICAL OFFICE MARKET The average quoted rental rate increased 1.8% from $24.18 to $24.61 per SF between quarters and increased by 4.5% from $23.56 per SF in Q4 2013. Due to the delivery of the Sugar Land Physicians Center 1, a 57,000-SF medical office building in Telfair, the vacancy rate increased from 12.1% to 13.1% between quarters. Memorial Hermann Sugar Land Hospital continues construction on its campus expansion which will double the size of the existing facilities. The first phase of construction is scheduled to be completed by early 2015. INDUSTRIAL MARKET The average vacancy rate for the Fort Bend industrial submarket decreased 10 bps from 6.6% in Q4 2013 to 6.5%. The quoted average rental rate for industrial space decreased from $6.78 in Q4 2013 to $6.49 per SF NNN. Construction continues on Aldi’s new 650,000-SF distribution center and division headquarters on Highway 90A West in Rosenberg. The project is expected to be completed by Q1 2016. Trammell Crow recently announced plans to develop Park8Ninety, a premier 125-acre business park located in Missouri City at Hwy 90A and Beltway 8. RETAIL MARKET The average asking rental rate for the Fort Bend retail submarket increased 4.6% from $18.22 per SF in Q4 2013 to $19.06 per SF. The average vacancy rate remained unchanged at 4.8%. One of the largest retail projects under construction is a new Gallery Furniture location along the Grand Parkway in The Market at Long Meadow Farms in Richmond. The 165,000-SF showroom, scheduled to open in March 2015, is a result of a boom in residential growth in Fort Bend County.

1. http://www.colliers.com/markets/sugarland
Q4 2014 | SUBMARKET SNAPSHOT
Industrial
4Q13 4Q14
VACANCY 6.6% 6.5%
ABSORPTION 41,189 12,797
RENTAL RATE $6.78 $6.49
Retail
4Q13 4Q14
VACANCY 4.8% 4.8%
ABSORPTION 33,964 -8,342
RENTAL RATE $18.22 $19.06
Office
4Q13 4Q14
VACANCY 14.9% 13.3%
ABSORPTION 216,614 23,725
RENTAL RATE $24.50 $25.26
OFFICE MARKET
The Fort Bend office submarket posted 23,725 SF of positive net
absorption in the fourth quarter of 2014, pushing the year-end total
to 253,876 SF. The average vacancy rate fell 40 basis points (bps)
from 13.7% to 13.3% between quarters, and decreased 160 bps
from 14.9% in Q4 2013. The average quoted rental rate increased
1.0% from $25.01 to $25.26 per SF between quarters and rose 3.1%
from $24.50 per SF in Q4 2013.
MEDICAL OFFICE MARKET
The average quoted rental rate increased 1.8% from $24.18 to
$24.61 per SF between quarters and increased by 4.5% from
$23.56 per SF in Q4 2013. Due to the delivery of the Sugar Land
Physicians Center 1, a 57,000-SF medical office building in Telfair,
the vacancy rate increased from 12.1% to 13.1% between quarters.
Memorial Hermann Sugar Land Hospital continues construction on
its campus expansion which will double the size of the existing
facilities. The first phase of construction is scheduled to be
completed by early 2015.
INDUSTRIAL MARKET
The average vacancy rate for the Fort Bend industrial submarket
decreased 10 bps from 6.6% in Q4 2013 to 6.5%. The quoted
average rental rate for industrial space decreased from $6.78 in Q4
2013 to $6.49 per SF NNN. Construction continues on Aldi’s new
650,000-SF distribution center and division headquarters on
Highway 90A West in Rosenberg. The project is expected to be
completed by Q1 2016. Trammell Crow recently announced plans
to develop Park8Ninety, a premier 125-acre business park located
in Missouri City at Hwy 90A and Beltway 8.
RETAIL MARKET
The average asking rental rate for the Fort Bend retail submarket
increased 4.6% from $18.22 per SF in Q4 2013 to $19.06 per SF.
The average vacancy rate remained unchanged at 4.8%. One of
the largest retail projects under construction is a new Gallery
Furniture location along the Grand Parkway in The Market at Long
Meadow Farms in Richmond. The 165,000-SF showroom,
scheduled to open in March 2015, is a result of a boom in residential
growth in Fort Bend County.
SUBMARKET SNAPSHOT
E. FORT BEND COMMERCIAL REAL ESTATE TRENDS
E. Fort Bend Market Indicators
Medical Office
4Q13 4Q14
VACANCY 9.6% 13.1%
ABSORPTION 4,463 38,141
RENTAL RATE $23.56 $24.61
Data Source: CoStar Property

2. SUBMARKET SNAPSHOT | Q4 2014 | E FORT BEND
COLLIERS INTERNATIONAL | FORT BEND
15999 City Walk, Suite 250
Sugar Land, Texas 77479
MAIN +1 281 494 4769
www.colliers.com
COLLIERS INTERNATIONAL | P. 2
FORT BEND
TEAM
REPRESENTATIVE PROPERTIES – FORT BEND
Kolbe Curtice, CCIM, CLS
Managing Director
Jim Pratt
Senior Vice President
GILLINGHAM DISTRIBUTION CENTER
Office/Warehouse for Lease
1601 Gillingham Ln, Sugar Land, TX
COMMERCIAL TRACT AT SIENNA PKWY
11 Acres for Commercial Development
Sienna Pkwy & Watts Plantation Rd, Missouri City,
Missouri City, TX
Land
Industrial
Retail
Corbin Janssen
Associate
Office
LEXINGTON SQUARE
Retail/Office Space for Lease
16525 Lexington Blvd, Sugar Land, TX
TELFAIR COMMERCIAL TRACTS
+/- 187 Acres for Commercial Development
Hwy 59 & University Blvd, Sugar Land, TX
SUGAR LAND PHYSICIANS CENTER 1
Medical Office Space for Lease
7616 Branford Place, Sugar Land, TX
3030 EDGEWATER
Office/Medical Space for Lease
3030 Edgewater Drive, Sugar Land, TX
THE SHOPPES AT SIENNA PLANTATION
Retail Pads for Sale or Ground Lease
State Hwy 6, Missouri City, TX
GRAYSTONE PARK
6,500-SF Office/Warehouse for Sale
13370 South Gessner, Missouri City, TX
Barkley Peschel
Vice President