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.
Overall, the City is maintaining its goals for commercial vacancy for retail and industrial, while narrowly missing the target for office vacancy. This increase in office vacancy is due to Sugar Land adding more than 63,000 new office space (about 5 new buildings) square footage in this quarter. Results for this quarter show that the City is maintaining its overall commercial square footage in industrial and retail. Sugar Land’s corporate diversification has continued to reinforce its strong performance in the commercial real estate market. Retail space had minimal increased vacancy results, while occupancy in the industrial sector continues to demonstrate the need for added light industrial square footage in the future. Since office vacancy is above the target of 10%, by 0.1%, this measure is evaluated as red for the quarter.
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.