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E. Fort Bend Commercial Real Estate Trends Submarket Snapshot

05/19/2014
Published By: crissy.nolen@colliers.com
Office Market
The Fort Bend office submarket posted 21,080 SF of positive net
absorption in the first quarter of 2014. The average vacancy rate
decreased 30 basis points (bps) from 14.4% to 14.1% in Q1 2014,
and 480 bps from 18.9% in Q1 2013. Texas Instruments is currently
constructing a new 165,000-SF office building which is scheduled to
deliver in Q1 2015. Fluor Enterprises purchased 50 acres in Telfair
and is in the early planning stages for the construction of a multibuilding
campus on the site.
 
Medical Office Market
The average vacancy rate for medical office in the Fort Bend
submarket increased by 60 bps from 7.3% to 7.8% between
quarters. The average quoted rental rate increased 0.9% from
$23.74 to $23.96 per SF between quarters, and increased 1.4%
from $23.63 per SF in Q1 2013. The submarket posted 4,462 SF of
positive net absorption in the fourth quarter. In Telfair, Empire
Commercial Developers has begun construction on a three-story,
46,000-SF medical office building with a three-story garage. The
project is slated for completion by July 2014.
 
Industrial Market
The Fort Bend industrial submarket posted 93,980 SF of positive net
absorption in the first quarter. The average vacancy rate decreased
90 bps from 6.0% in Q1 2013 to 5.1%, and 30 bps from 5.4% in Q4
2013. The quoted average rental rate for industrial space increased
0.5% to $6.64 from $6.61 per SF NNN between quarters and from
$5.44 per SF NNN in Q1 2013, an increase of 22.1%. Two new
buildings totaling 27,388 SF delivered during the first quarter, and
there are no buildings under construction.
 
Retail Market
Fort Bend's retail market posted 6,111 SF of positive net absorption
in the first quarter. The average retail vacancy rate for all product
types increased 50 bps from 4.7% to 5.2% in Q4 2013 and
decreased 90 bps from 6.1% in Q1 2013. Two new retail centers
were completed in Q1 2014, adding 58,500 SF to the submarket’s
inventory. One of the centers, The Exchange at Telfair, is 100%
pre-leased to tenants that include Subway and Texas State Optical.
The other center, located at 11929 University Blvd, is 100% vacant.
Release Date05/19/2014 - 07:00

Source

Colliers International

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