Q1 2018 | Fort Bend | Submarket Snapshot
E Fort Bend Commercial Real Estate Trends
The Fort Bend office submarket posted 177,000 SF of negative net absorption in
Q1 2018. This was primarily due to Telecheck closing its Sugar Creek on the Lake
offices. The average vacancy rate increased 330 basis points (bps) from 8.4% to
11.7% over the quarter. The average quoted rental rate decreased between quarters from $25.14 to $24.92 per SF. Leasing activity, which includes renewals, increased slightly over the quarter from 87,000 SF to 106,000 SF. There are currently two buildings under construction; the largest of the two being a 23,530-SF, two-story general purpose office building located at 12002 S Highway 6.
Medical Office Market
The average quoted rental rate decreased over the quarter from $29.51 to $29.20 per SF. The average vacancy rate increased 70 bps from 10.4% to 11.1% over the quarter mostly due to new construction. Currently, there are two medical office buildings under construction in the E Fort Bend/Sugar Land submarket. The largest project is a 38,600-SF, two-story medical office building located at 7619 Branford Place, which is expected to deliver in August 2018. Two medical office buildings delivered during Q1 2018, one delivered partially leased causing vacancy and absorption to increase over the quarter.
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