Office Vacancy Rate In Sugar Land Area Approaching 18%
Although the Houston-area economy has escaped much of the devastation occurring in California, Michigan, Florida and other troubled regions, things are starting to get a bit worse. Until recently, the national commercial real estate market (CRE) has largely avoided the effects of economic turmoil, but the times are changing. CRE vacancy rates are sinking nationwide, and the Sugar Land area is feeling the effects as well. KHOU recently surveyed local CRE vacancy rates and discovered that the amount of empty space is increasing here.
Sugar Land - For Lease
In downtown Houston, the vacancy rate is 10%, but Sugar Land is among some local areas where vacancy rates are significantly higher. KHOU found that the vacancy rate for commercial space in the Sugar Land/Southwest Belt area was close to 18%. The Sugar Land area was identified as one of the three hardest-hit local areas for CRE vacancies. The other two areas are:
- Northwest Harris County - 20%
- 1960-Area - 53%
Despite these vacancy rates, Houston-area businessmen remain relatively optimistic about the future of the local economy as compared to other, harder-hit parts of the country. And commercial construction in the Sugar Land area remains active, with projects visible in various places, including:
- Methodit Hospital
- Near FedEx/Kinko’s on Highway 59 and
- Along Highway 6 between Highway 59 and Brooks St.
But even long-planned Sugar land projects are being affected. Witness the recently-reported delays in the commercial aspects of the Imperial Sugar project.
(Click here for the KHOU report)