E Fort Bend Commercial Real Estate Trends

1. E Fort Bend Commercial Real Estate Trends
Submarket Snapshot
FORT BEND
Q2 2020
Lisa Bridges Director of Market Research | Houston
Office Market
The Fort Bend office submarket posted 31,309 SF of negative net absorption in Q2
2020. The average vacancy rate increased to 11.8% from 10.3% over the quarter. The
average quoted rental rate dropped from $30.97 to $30.39 per SF and leasing activity
decreased over the quarter by 40%. There is one building totaling 56,000 SF under
construction - an expansion for the Houston Community College System located on
W Airport Blvd. The building is expected to deliver in Q3 2020.
Medical Office Market
The average quoted rental rate increased over the quarter from $27.63 to $28.02 per
SF. The average vacancy rate rose 70 bps from 14.6% in Q1 2020 to 15.3%. Leasing
activity remained steady over the quarter, totaling 18,602 SF. Currently, there are no
buildings over 10,000 SF under construction in the submarket.
Industrial Market*
Although the submarket recorded 61,451 SF of positive net absorption during Q2
2020, vacancy remained at 9.4% due to the completion of a new building that was
added to the existing inventory. The average quoted rental rate rose over the quarter
from $8.11 per SF to $8.20 per SF. Currently, there are seventeen buildings with
1,049,600 SF of industrial space under construction. The largest project is the
228,900 SF speculative industrial distribution warehouse located in the Stafford
Crossing development located at Highway 59 (Highway 69) and Highway 90, in
Stafford, TX.
Retail Market
The average asking rental rate for the Fort Bend retail submarket increased from
$23.06 per SF in Q1 2020 to $23.23 per SF in Q2 2020. The submarket recorded
15,699 SF of negative net absorption in Q2 2020, increasing the vacancy rate from
6.4% to 6.9%. Five properties totaling 110,900 SF are currently under construction.
The largest project includes two 30,750 SF buildings in Tang City Plaza on Highway
6 in Stafford, TX. The buildings are scheduled to deliver in Q3 2020.
Market
Indicators Q1 2020 Q2 2020
OFFICE
VACANCY 10.3% 11.8%
NET ABSORPTION 24,416 -31,309
RENTAL RATE $30.97 $30.39
MEDICAL OFFICE
VACANCY 14.6% 15.3%
NET ABSORPTION 34,065 -1,939
RENTAL RATE $27.63 $28.02
INDUSTRIAL
VACANCY 9.4% 9.4%
NET ABSORPTION 431,386 61,451
RENTAL RATE $8.11 $8.20
RETAIL
VACANCY 6.4% 6.9%
NET ABSORPTION -15,303 -15,699
RENTAL RATE $23.06 $23.23
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
Land
10 TO 40 ACRES FOR DEVELOPMENT
HIGHWAY 6 FRONTAGE
11923 Highway 6, Fresno, TX
Office
THREE SUGAR CREEK
Class “A” 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-ACRE DEVELOPMENT SITE
SEC SH 36 & Spur 10, Rosenberg, TX
RIVER PARK RIDGE DEVELOPMENT
Preleasing Medical/Professional Office
2819 Imperia Dr, Sugar Land, TX
RETAIL/OFFICE SPACE AVAILABLE
1,450 - 2,145 SF at Ashford Lakes
11420 Dairy Ashford, Sugar Land, TX
GILLINGHAM DISTRIBUTION CENTER, PH II
Proposed 104,000 SF New Construction
1621 Gillingham Ln, 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
Kimberly Lenardson
Vice President | Houston
713 830 2186
kimberly.lenardson@colliers.com

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