Office Market
The Fort Bend office submarket posted 67,322 SF of negative net absorption in Q2 2019. The average vacancy rate rose 210 basis points (bps) increasing to 12.4% over the quarter due to the addition of 50 lease spaces. The average quoted rental rate increased from $27.69 to $28.80 per SF. Leasing activity decreased over the quarter by 35%. HCSS is expanding their footprint with the addition of a 56,000-SF office building on their current campus on Airport Blvd.

Medical Office Market

The average quoted rental rate decreased 3.6% over the quarter from $29.05 to $28.00 per SF. The average vacancy rate dropped 50 bps from 14% in Q1 2019 to 13.5% in Q2 2019. Leasing activity increased significantly, growing by 88% over the quarter. Three buildings totaling 136,190 SF are currently under construction. The largest of the three is an 87,500-SF, 100% pre-leased medical office condo located at 800 Bonaventure Way.

Industrial Market*

The submarket recorded 6,233 SF of negative net absorption during Q2 2019, a major tumble from the 269,713 SF of positive net absorption recorded in Q1 2019. Because 639,764 SF of new buildings were completed this quarter, the average industrial vacancy rate rose... To read the full report, click here.