Research Snapshot

THE WOODLANDS | OFFICE

Q1 2018

The Woodlands’ office submarket snapshot

Lisa Bridges Director of Market Research | Houston

The Woodlands’ office submarket remains positive during the

first quarter with flat vacancy and positive absorption, while
other Houston office submarkets continue to see high vacancy Market Indicators
Class A Class B
and negative net absorption. Over the quarter, The Woodlands’
average vacancy rate decreased by 40 basis points and leasing VACANCY
activity remained steady. NET ABSORPTION

Construction continues on CityPlace in Springwoods Village CONSTRUCTION

where tech giant HP Inc. preleased 378,000 SF and American RENTAL RATE
Bureau of Shipping preleased 326,800 SF of office space.
NEW SUPPLY
Completion of the buildings is expected in the latter part of 2018.

Statistical Summary
NET ABSORPTION RENTAL
INVENTORY DIRECT VACANCY SUBLEASE VACANCY VACANCY VACANCY RATE (%) (SF) RATE

Class # of Bldgs. Total (SF) (SF) Rate (%) (SF) Rate (%) Total (SF) Q1-2018 Q4-2017 Q1-2018 Q4-2017 AVG ($/SF)

The Woodlands
A 38 10,720,667 962,198 9.0% 56,862 0.5% 1,019,060 9.5% 9.5% (2,949) 149,403 $33.33
B 69 4,430,967 416,088 9.4% 46,898 1.1% 462,986 10.4% 11.1% 30,270 8,656 $25.50
C 5 131,696 41,074 31.2% 0 0.0% 41,074 31.2% 28.7% (3,234) (3,191) $24.81
Total 112 15,283,330 1,419,360 9.3% 103,760 0.7% 1,523,120 10.0% 10.4% 24,087 154,868 $0.00
Willis
149 105 Lake
Conroe

WOODLANDS SUBMARKET MAP 105

Cleveland

Conroe 105

149

TEXAS HOUSTON 1488

242 THE WOODLANDS
1488 Magnolia 321 1488
The Woodlands
Res Needham Rd.
ear 242
For ch
Wo est
o
Tomball Par dlands
Waller Spring Dayton kwa
Kingwood
y
Hockley
Huffsmith-Kohrville

Cypress Humble Atascocita

IAH
Lake
Gro

Houston
1314
gan
Gosling Rd.

Crosby

The Woodlands
’s M
ill R

Mont Belvieu
d.
Ku
y
ke

Katy CBD
n

Brookshire
da

2920 Spring Stuebner

hl

Ship 330
Channel
249
Baytown
Bellaire 225
To Houston CBD

Pasadena
La Porte
146
HOU
Sugar Land 35
EFD

Richmond Clear Lake

Pearland Galveston
Bay
35

League City

Alvin

Texas
City

Hitchcock
The average quoted rental rates are a mix of direct and sublet rates and are based on a blend of gross and NNN. The graphs below are
only intended to show rental rate trends. Actual gross rates are higher than the average rate shown in the graph.

Class A Rental Rate and Vacancy Percentage

The Woodlands, TX
Class A Rents Class A Vacancy
$39.00 18.0

16.0
$37.00
14.0
$35.00
12.0
$33.00 10.0

$31.00 8.0

6.0
$29.00
4.0
$27.00 2.0

$25.00 0.0

*Vacancy percentage includes direct and sublease space.

Class B Rental Rate and Vacancy Percentage

The Woodlands, TX
Class B Rents Class B Vacancy
$28.00 18.0

$27.00 16.0

$26.00 14.0
$25.00
12.0
$24.00
10.0
$23.00
8.0
$22.00
6.0
$21.00
4.0
$20.00
$19.00 2.0

$18.00 0.0

*Vacancy percentage includes direct and sublease space.

Available Sublease Space

Available Sublease Space - The Woodlands Q1 2018

Class A: 104,749 SF or 0.9%

Class B: 86,184 SF or 1.9%
Class A Class B
350,000

300,000

250,000

200,000

150,000

100,000

50,000

2 The Woodlands Research Snapshot | Q1 2018 | Office | Colliers International

 Absorption and New Supply
Woodlands Class A Office

Net Absorption New Supply

2,000,000
1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
-200,000

Woodlands Class B Office

Net Absorption New Supply

200,000

150,000

100,000

50,000

-50,000

-100,000

-150,000

FOR MORE INFORMATION

Lisa Bridges
Director of Market Research | Houston
+1 713 830 2125
lisa.bridges@colliers.com

Colliers International | The

Market
Woodlands
000 Address,
1790 Hughes Landing
Suite # Blvd., Suite 250
000 Woodlands,
The Address, Suite
TX 77380
#
+1 713
0008300004011
0000
Copyright © 2018
2015 Colliers International.
The information contained herein has been obtained from sources deemed reliable. While colliers.com/<<market>>
colliers.com/thewoodlands
every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No
responsibility is assumed for any inaccuracies. Readers are encouraged to consult their
3
professional advisors prior to acting on any of the material contained in this report.
North American Research & Forecast Report | Q4 2014 | Office Market Outlook | Colliers International