Commercial Vacancy Rate
Strong Local Economy
Status Indicators: Proceeding as Anticipated | Monitoring Progress | Reviewing for Improvement | Information Unavailable
Proceeding as Anticipated
Reviewing for Improvement
Please note that Q1, Q2, Q3, and Q4 refer to the first, second, third, and fourth quarters of the Fiscal Year. The City’s Fiscal Year runs from October 1st – September 30th and is denoted by FY. CY denotes Calendar Year.
Overall, the City continues to maintain its goal for commercial vacancy for retail and industrial, while missing the target for office vacancy due to the decreased demand for office space resulting from the COVID-19 pandemic. Office and retail vacancy remains unchanged from last quarter. Industrial vacancy has improved, decreasing by 1.3% from last quarter.
Results from the 1st quarter show that the City has slightly increased its inventory of industrial and office square footage and is maintaining its overall commercial square footage in retail. Sugar Land’s corporate diversification has continued to reinforce its strong performance in the commercial real estate market.
Office= 16.3% Retail= 6.5% Industrial=6.4%
Percentage of current real estate capacity not occupied by tenants in Office, Industrial, and Retail commercial space within the City of Sugar Land.
The target is set at less than or equal to 10%, which is considered a sensible target equilibrium in the occupancy of commercial space.
Too little space available presents as much of a challenge as the underutilization of commercial space, and both extremes also would likely cause negative impacts to the market prices for commercial space. In the future, comparing performance against regional economic competitors like The Woodlands and the Energy Corridor presents an opportunity to gain additional value from tracking the performance of this measure.
Strong occupancy rates in Office, Industrial, and Retail commercial space ensure that Sugar Land remains a vibrant regional business hub and promote the continued economic success of the community.