Q2 2017 | Fort Bend | Submarket Snapshot

HOUSTON - Sept. 8, 2017 - PRLog -- Lisa Bridges Director of Market Research | Houston

Office Market

The Fort Bend office submarket posted 8,645 SF of negative net absorption in Q2 2017. The average vacancy rate increased 10 basis points (bps) from 10.5% to 10.6% over the quarter, and increased 160 bps from 9.0% in Q2 2016. The average quoted rental rate increased between quarters from $24.41 to $24.76 per SF. Current office development includes two buildings which total about 180,000 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 increased 1.8% over the quarter from $28.42 to $28.94 per SF, and increased 13.3% over the year from $25.52 per SF in Q2 2016. The average vacancy rate decreased 40 bps from 13.4% to 13.0% over the quarter and decreased 20 basis points from 13.2% in Q2 2016. Currently, there are two medical office buildings under construction in the E Fort Bend/Sugar Land submarket. The larger property is a 38,600-SF, two-story medical office building located at 7619 Branford Place, expected to deliver in May 2018. The other property is Telfair Medical Plaza, a 23,600-SF medical office building which is currently 15.3% pre-leased. The building is expected to deliver in December 2017.

Industrial Market

The average vacancy rate still remains very low, however the Fort Bend industrial submarket increased 10 bps over the quarter and increased 40 bps over the year from 2.4% in Q2 2016. The average quoted rental rate decreased 6.9% from $9.02 per SF to $8.40 per SF NNN over the quarter, and increased marginally from $8.32 per SF NNN in Q2 2016.

Retail Market

The average asking retail rental rate for the Fort Bend retail submarket increased 2.1% between quarters from $20.68 per SF to $21.12 per SF, and increased 3.6% from $20.39 per SF in Q2 2016. The submarket recorded negative net absorption in Q2 2017 and the vacancy rate increased by 60 bps over the quarter. At the end of the quarter, 410,547 SF of retail space was under construction. The largest project is The Village at Riverstone, a 165,000-SF Kroger anchored center located along University Boulevard at LJ Parkway. The shopping center is scheduled for completion in August 2018.

Read more at: www.colliers.com/texas/fortbendsnapshot