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.
Results for this quarter show that the City is maintaining its overall commercial square footage in industrial, retail, and office vacancies. Sugar Land’s corporate diversification has continued to reinforce its strong performance in the commercial real estate market. Both retail and office space had increased vacancy results, while occupancy in the industrial sector continues to demonstrate the potential need for added light industrial square footage in the future.
- Sugar Creek on the Lake: 185,362 sf available with 62,457 sf contiguous on the 4th Floor
- Lake Pointe Plaza/One Fluor Daniel: 85,927 sf available for sublease on the 2nd and 3rd Floor
- Sugar Creek I: 63,927 sf available with 26,133 sf contiguous
- Texas Drive Building: 51,279 sf available with 24,897 contiguous sf sublease space on the 5th floor
Even though these buildings have more than 50,000 sf of office space available only the first two buildings could truly accommodate a tenant that needs 50,000+ sf for themselves. The other options are smaller suites that are spread out throughout the building.Although the office vacancy has increased slightly, it is important to note that there are only two spaces that would truly accommodate a significant user requiring 50,000 square feet or greater. Sugar Land’s office market is one of the best performing in Houston’s submarkets which has been attributed to the community’s diverse tenant base and strong economic development program.
Percentage of current 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.