The Fort Bend office submarket posted 72,721 SF of negative net absorption in Q3 2016. The average vacancy rate increased 120 basis points (bps) from 8.9% to 10.1% between quarters, and increased 130 bps from 8.8% in Q3 2015. The average quoted rental rate decreased 2.2% between quarters from $26.15 to $25.57 per SF, and dropped 1.8% from an average rate of $26.05 per SF in Q3 2015. Current office development includes about 90,000 square feet in the Imperial Market mixed-use development. The office space is expected to be completed by October 2017.
Medical Office Market
The average quoted rental rate remained flat over the quarter and marginally decreased 0.3% from $25.75 per SF in Q3 2015 to $25.68 per SF. The vacancy rate decreased 40 basis from 14.7% to 14.3% over the quarter and increased 200 basis points from 12.3% in Q3 2015. Currently, there are four medical office buildings under construction in the E Fort Bend/Sugar Land submarket. The two largest properties include a 38,600-SF, two-story building located at 7619 Branford Place which is 0% pre-leased and is expected to deliver in June 2017. The other is the 25,000-SF Easton Professional Bulding located at 6514 Highway 90A which is 52.1% pre-leased and is expected to deliver during Q4 2016.
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