A Strategic Hub for Growth


Fort Bend County, a dynamic suburb of Houston, has emerged as one of the most vibrant commercial real estate markets in Texas. With a strategic location, diverse economy, and unparalleled quality of life, the county continues to attract businesses, residents, and investors alike. This report explores Fort Bend County’s commercial real estate landscape, emphasizing historical milestones, economic drivers, recent trends, and future opportunities.

 

Milestones & Growth Drivers

By the Numbers

Fort Bend County’s commercial real estate market is diverse, catering to a wide range of property types that support the area’s economic and population growth. The following charts provide a snapshot of the current inventory by property type and the square footage under construction, illustrating the county’s development priorities and sectoral strengths. The first chart showcases the existing inventory of commercial real estate in Fort Bend County. Multi-family and flex & industrial properties dominate the market, representing 28.8% and 27.9% of total square footage, respectively. This high percentage of multi-family inventory reflects Fort Bend’s rapid population growth and the demand for housing options, while the significant flex & industrial highlights the county’s strategic role in logistics and distribution. Retail spaces, making up 25.3% of the inventory, underline the county’s diverse consumer base and growing need for retail amenities.

Future Growth Opportunities

» Office properties account for 7.4% of the total inventory, meeting the needs of businesses and professional services. However, the increasing density from the county’s rapid residential and commercial growth is likely to spur demand for additional office space. As more businesses seek to serve the growing population and companies continue to relocate to suburban markets, Fort Bend’s expanding workforce and thriving economy could necessitate new office developments, particularly in high-demand submarkets like Sugar Land and Katy/Grand Parkway West.

» Specialty properties (6%) cater to specific market demands, while healthcare facilities (2.2%) and hospitality properties (1.9%) serve the county’s residential and visitor populations. Sports & entertainment properties, though only 0.4% of the inventory, contribute to Fort Bend’s quality of life, attracting residents and visitors alike. Together, this diverse mix of property types underscores the county’s balanced growth and its ability to adapt to evolving market trends.

» Mixed-use master planned developments like Austin Point will be key for future growth. The Signorelli Company, the developer of Austin Point, has 15 million square feet of planned commercial space (including office, retail, medical, multifamily, and hospitality properties). Once completed, this project is expected to be larger in population than the city of Rosenberg.

» Multi-family construction leads with over 3 million square feet, indicating sustained demand for housing driven by the county’s population increase. Flex & industrial properties follow closely, as new industrial parks and logistics centers take shape to meet the expanding needs of the distribution and manufacturing sectors.

» Specialty, retail, and office spaces are also under development, albeit at lower levels. This suggests a steady but measured expansion in these sectors, with retail and office projects likely aligning with specific community needs or planned developments. Hospitality construction is minimal, reflecting a more gradual growth in this segment, possibly as a response to measured demand from tourism and business travel.

Key Commercial Real Estate Segments

Fort Bend County boasts an office market totaling approximately 12.4 million square feet, with about 400,000 square feet currently under construction. Notably, nearly 80% of the county’s office inventory is concentrated in the Sugar Land submarket, which is the primary hub for professional services and corporate offices. Sugar Land Town Square stands out as a key destination, offering modern amenities and a business-friendly environment tailored to corporate needs.

A distinctive feature of Fort Bend’s office market is the dominance of medical office properties in new developments. Approximately 63% of the office construction pipeline is made up of medical office properties, reflecting the growing demand for healthcare facilities in the area.

Given the rapid population and economic growth in Fort Bend County, there is likely a pent-up demand for more traditional office properties. With businesses continuing to relocate to the area and existing companies expanding, the need for high-quality, non-medical office space to accommodate diverse professional services is evident. Strategic development of such properties could capitalize on this demand and further solidify Fort Bend’s position as a premier destination for businesses.

» Industrial and Flex Properties. Strategically located near Houston and major transportation corridors, Fort Bend County has become a hub for logistics and distribution. Business parks like Park 8Ninety and Lakeview Business Park attract companies like Amazon, Home Depot, and FedEx, leveraging the county’s accessibility and land availability. Flex and industrial properties play a significant role in Fort Bend County, particularly within clusters like the Southwest Corridor and Hwy 59/Hwy 90. These areas serve as logistics and distribution hubs due to their proximity to major highways, making them ideal for businesses requiring accessible routes for transportation and distribution. Fort Bend’s industrial sector is expanding, with several projects under construction in these corridors, underscoring the county’s commitment to building its logistics infrastructure. This focus aligns well with regional growth in e-commerce and warehousing, further solidifying Fort Bend as a strategic industrial destination.

» Retail Market Dynamics. The retail landscape is evolving toward mixed-use projects that integrate retail, office, and residential spaces. Developments like Sugar Land Town Square and the Imperial Market offer vibrant environments that attract residents and visitors. Retail properties are concentrated mainly in the Southwest Submarket, where 1,362 properties contribute to a robust retail scene. This wellestablished area benefits from strong consumer demand due to accessibility and a dense population base. The West Submarket has fewer retail properties (350) but commands a higher average rent of $28.15 (NNN) per square foot, indicating a market for premium retail locations. In contrast, the South Submarket has minimal retail presence, with only 8 properties, suggesting untapped potential for future retail development as residential growth continues in the area.

» Multi-Family and Hospitality Trends Multi-family developments are clustered in key residential submarkets like Cinco Ranch, Richmond/Rosenberg, and Sugar Land/Missouri City, which are experiencing high population growth. These projects address the demand for housing options spurred by Fort Bend’s expanding workforce and residential base. In contrast, the hospitality sector shows limited activity, with only one property currently under construction, suggesting a restrained focus in this area. This could reflect measured demand for hospitality spaces, with more attention directed toward industrial and multi-family developments that align closely with the county’s growth drivers. These trends by property type reveal a strategic approach in Fort Bend County’s real estate market, with a strong emphasis on industrial and logistics expansion, diverse office space offerings, and a robust retail presence that serves the growing population. Each property type plays a distinct role in supporting the county’s economic and demographic growth, positioning Fort Bend as a dynamic market within the broader Houston metropolitan area.

Sugar Land: A Commercial & Cultural Center 

Sugar Land stands out as Fort Bend County’s premier commercial and cultural hub, setting the tone for regional development. With planned growth, robust infrastructure, and a business-friendly environment, Sugar Land attracts a range of industries, including healthcare, technology, and professional services. Its focus on creating a balanced, vibrant community has driven the city’s transformation into an ideal location for both businesses and residents.

» Sugar Land Town Square: Launched as one of Fort Bend County’s first large-scale, mixed-use developments, Sugar Land Town Square is the heart of the city’s business district. This 32-acre project combines office spaces, boutique shops, and entertainment venues in a pedestrian-friendly setting. It continues to attract corporate offices, dining establishments, and retail boutiques, providing a lively atmosphere that has become a model for subsequent developments in Fort Bend County.

» Smart Financial Centre: The Smart Financial Centre, a performing arts venue with a capacity of over 6,400 seats, opened in January 2017. The venue has brought major concerts, theatrical performances, and other events to Sugar Land, solidifying its status as a cultural destination. The centre’s presence has spurred growth in nearby retail and hospitality businesses, which benefit from the influx of visitors attending shows and events.

» Healthcare and Educational Hubs: Sugar Land has strategically invested in healthcare and education, creating hubs that drive commercial activity. The University of Houston at Sugar Land, which expanded in 2019, has become a significant educational asset, supporting industries by providing a steady talent pipeline. Leading healthcare facilities, such as Houston Methodist Sugar Land Hospital and Memorial Hermann Sugar Land Hospital, have continually expanded their campuses to meet growing demand. These healthcare investments attract specialized medical practices, office developments, and service-oriented retail nearby, making Sugar Land a regional healthcare destination.

Infrastructure and Development Projects

Fort Bend County’s growth is underpinned by targeted infrastructure investments that facilitate both residential and commercial expansion. These projects strengthen connectivity within Fort Bend and enhance its attractiveness to businesses across various sectors.

Transportation

» Fort Bend Tollway. The Fort Bend Tollway provides direct access from southwest Fort Bend to the Texas Medical Center and other employment centers in Houston. This tollway has opened up new areas for development, particularly in and around Missouri City, and supports Fort Bend’s logistics and distribution sectors.

» Interstate 69 Expansion. Formerly known as Highway 59, this interstate expansion has significantly improved connectivity between Fort Bend and Houston. It has catalyzed commercial growth along its route, with distribution centers and retail hubs springing up along this critical corridor. The expansion has enhanced Fort Bend’s appeal as a strategic location for businesses that depend on efficient regional access.

Healthcare Facilities

» Houston Methodist Sugar Land Hospital (Opened in 1998; Expanded in 2017 and 2023): This hospital has become one of the largest healthcare providers in Fort Bend, spurring complementary development in nearby office spaces and retail that cater to medical professionals, patients, and their families.

» Memorial Hermann Sugar Land Hospital (Opened in 2006; Expanded in 2021): Located near major business and residential areas, this hospital has seen continual expansion, boosting demand for surrounding commercial spaces and supporting an ecosystem of healthcare-related businesses.

Master-Planned Communities

» Sienna. Originally developed in the late 1990s, Sienna has grown into one of Fort Bend’s largest masterplanned communities, with over 10,000 homes, schools, parks, and commercial spaces. Its success has drawn affluent residents and created demand for nearby retail, office, and service-oriented businesses.

» Aliana. Another major master-planned community, Aliana has been instrumental in driving population growth in Sugar Land and Fort Bend County. This community, developed in the 2010s, offers a range of amenities and housing options that attract highincome residents, providing a stable customer base for businesses in the surrounding areas.

» Austin Point. Austin Point is a 4,700-acre masterplanned community that will encompass more than 14,000 residences and a planned 15 million square feet of muti-family, office, medical, retail and hospitality space. Phase one is just now underway, with the first homes being available for sale in mid-2025. Major developments like this reinforce population projects for Fort Bend County, which is expected to double in population by 2040.

Emerging Areas & Future Opportunities

Beyond Sugar Land, Fort Bend County’s commercial real estate market is expanding into emerging areas with distinct growth potential. These areas are poised to become key hubs for industrial, retail, and office developments, providing new opportunities for businesses and investors.

» Richmond-Rosenberg Corridor. Located along major highways and benefitting from proximity to the Interstate 69 corridor, the Richmond-Rosenberg area is becoming a prime destination for logistics and industrial developments. The area’s appeal lies in its accessible location for distribution, with recent investments in infrastructure paving the way for new industrial parks and warehousing facilities.

» Missouri City. Known for its business-friendly policies, Missouri City has been proactive in attracting businesses and fostering economic growth. Recent retail and office expansions have made it a hotspot for both established companies and startups. With ongoing developments in mixed-use projects and flexible office spaces, Missouri City is positioned to capture a growing share of Fort Bend’s commercial market.

» Fulshear: This rapidly expanding residential community is now emerging as a focal point for retail and service-oriented commercial growth. Fulshear’s rising population has created a demand for grocery stores, dining, and service businesses that cater to local residents. Its growth trajectory is expected to continue, with new commercial projects aligning with Fulshear’s community-focused character.Despite current challenges, the DFW multifamily market remains well-positioned for long-term growth, supported by favorable demographics and the region’s continued economic vitality.

Looking Forward

Fort Bend County’s diverse economy, strategic location, and commitment to quality of life make it a thriving commercial hub. From historical milestones to future opportunities, the county is positioned for sustained growth, attracting businesses and investors seeking to capitalize on its dynamic market. With ongoing infrastructure investments and an expanding population,

Fort Bend County’s commercial real estate sector will continue to play a pivotal role in the Houston metropolitan area. Fort Bend County’s commercial real estate market demonstrates key trends across various property types, reflecting the area’s growth priorities and sectoral strengths. The county’s strategic location, along with its diverse economic base, attracts a range of property types, each serving unique needs within the commercial landscape.

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Steve Triolet
Senior Vice President of Research and Market Forecasting
[email protected]
tel 214 223 4008