The Fort Bend commercial real estate market saw mixed trends in Q4 2019. Office vacancy rates increased slightly while rental rates increased. Medical office vacancy rates rose significantly while rental rates decreased slightly. Industrial vacancy increased due to new inventory additions despite positive net absorption, while rental rates rose. Retail vacancy and rental rates both increased despite negative net absorption. Several new commercial projects are under construction across all sectors.

1. E Fort Bend Commercial Real Estate Trends
Submarket Snapshot
FORT BEND
Q4 2019
Lisa Bridges Director of Market Research | Houston
Office Market
The Fort Bend office submarket posted 7,992 SF of negative net absorption in Q4
2019. The average vacancy rate increased from 11.8% to 12.0% over the quarter.
The average quoted rental rate increased from $28.25 to $29.55 per SF and leasing
activity increased over the quarter by 78%. There are three buildings totaling 105,300
SF under construction. The largest building under construction is a 56,000-SF
expansion for the Houston Community College System, located on W Airport Blvd.
Medical Office Market
The average quoted rental rate decreased over the quarter from $27.82 to $27.59
per SF. The average vacancy rate rose 170 bps from 13.8% in Q3 2019 to 15.5% in
Q4 2019. Leasing activity declined by 34% over the quarter. Four buildings totaling
136,190 SF are currently under construction. The largest of the three is a 100% pre-
leased, 87,500-SF medical office condo located at 800 Bonaventure Way.
Industrial Market*
Although the submarket recorded 144,317 SF of positive net absorption during Q4
2019, vacancy still increased due to the completion of two new buildings that were
added to inventory. The addition of the unleased portion of 479,205 SF of new
inventory helped to increase the average industrial vacancy rate 100 basis points,
rising from 6.4% to 7.4%. The average quoted rental rate rose over the quarter
from $7.38 per SF to $7.51 per SF. Currently, there are 19 buildings with 1.4M
SF of industrial space under construction. The largest project is the 290,373-SF
speculative industrial warehouse located in the Waypoint Business Park on Cravens
Rd in Missouri City, TX.
Retail Market
The average asking rental rate for the Fort Bend retail submarket increased from
$22.27 per SF in Q3 2019 to $22.53 per SF in Q4 2019. The submarket recorded
18,665 SF of negative net absorption in Q4 2019, increasing the vacancy rate from
5.9% to 6.3%. Seven properties totaling 174,935 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 Q3 2019 Q4 2019
OFFICE
VACANCY 11.8% 12.0%
NET ABSORPTION 19,517 -7,992
RENTAL RATE $28.25 $29.55
MEDICAL OFFICE
VACANCY 13.8% 15.5%
NET ABSORPTION -11,389 -18,570
RENTAL RATE $27.82 $27.59
INDUSTRIAL
VACANCY 6.4% 7.4%
NET ABSORPTION 240,117 144,317
RENTAL RATE $7.38 $7.51
RETAIL
VACANCY 5.9% 6.3%
NET ABSORPTION -86,957 -18,665
RENTAL RATE $22.27 $22.53
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
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Representative Properties
Land
93.66 AC DEVELOPMENT TRACT
OFF HIGHWAY 59
Spur 10 & Anton Stade, Rosenberg, TX
Office
THREE SUGAR CREEK
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 AC DEVELOPMENT SITE
SEC SH 36 & Spur 10, Rosenberg, TX
RIVER PARK RIDGE DEVELOPMENT
Preleasing Medical/Professional Office
2819 Imperia Dr, Sugar Land, TX
6,262 SF FREESTANDING RESTAURANT
Highway 90 Frontage in Old Rosenberg
4511 Ave H/Hwy 90, Rosenberg, TX
GILLINGHAM DISTRIBUTION CENTER, PH II
Proposed 104,000 SF New Construction
1621 Gillingham Ln, Sugar Land, 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

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