Q3 2018 Fort Bend Submarket Snapshot

East Fort Bend Commercial Real Estate Trends

Office Market

The Fort Bend office submarket posted 90,618 SF of positive net absorption in Q3 2018, a 63% increase from the previous quarter. The average vacancy rate fell 120 basis points (bps) from 11.8% to 10.6% over the quarter and the average quoted rental rate increased 2.5% from $26.04 to $26.69 per SF. One building delivered in Q3, a 20,800-SF two-story office building located in Telfair.

Medical Office Market

The average quoted rental rate increased over the quarter from $28.50 to $28.89 per SF. The average vacancy rate fell 90 bps from 13.2% in Q2 2018 to 12.3% in Q3 2018. Leasing activity increased from 14,686 SF to 78,348 SF over the quarter. One building is under construction in the E Fort Bend/Sugar Land submarket, a 38,600- SF, two-story medical office building located at 7619 Branford Place. The building is 10% pre-leased and is scheduled to deliver in December 2018.

Industrial Market*

The average industrial vacancy rate decreased 40 basis points over the quarter from 6.7% to 6.3%. The submarket recorded 106,098 SF of positive net absorption during Q3 2018, up from the 89,227 SF of positive net absorption recorded in Q2 2018. The average quoted rental rate rose marginally over the quarter. 60,000 SF of industrial space is under construction and 900,000 SF delivered during the quarter. The largest project recently completed is the 550,000-SF distribution center for Best Buy.

Retail Market

The average asking rental rate for the Fort Bend retail submarket increased to $22.80 per SF in Q3 2018 from $22.71 per SF in Q2 2018. The submarket recorded 137,578 SF of positive net absorption in Q3 2018 and the vacancy rate decreased by 30 bps over the quarter. At the end of the quarter, 410,000 SF of retail space was under construction. The largest project is The Village at Riverstone, a 191,500-SF Kroger-anchored neighborhood shopping center located along University Boulevard at LJ Parkway, which is expected to be completed in December 2018.

For the complete report: http://bit.ly/Q3_2018_Fort_Bend_Submarket_Snapshot_PDF