Research Snapshot

THE WOODLANDS | OFFICE

Q2 2018

The Woodlands’ office submarket snapshot

Lisa Bridges Director of Market Research | Houston

Once again, The Woodlands’ office submarket performed well over the
quarter, posting 97,754 SF of positive net absorption in Q2 2018. The Market Indicators
average vacancy rate continued to decrease, dropping from 9.8% to Class A Class B
8.2%. VACANCY

Research Forest Lakeside Building 4 (2445 Technology Forest Blvd.), NET ABSORPTION
completed two subleases over the quarter. Dover Energy Automation CONSTRUCTION
subleased 23,535 SF and Star West Generation subleased 6,476 SF.
RENTAL RATE
Patrinely Group began construction on City Place 1 (1700 City Plaza NEW SUPPLY
Dr.) in Springwoods Village. The 5-story, 141,700 sf building with
122,600 sf of office space is estimated to be completed in Q2 2019.

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

Class # of Bldgs. Total (SF) (SF) Rate (%) (SF) Rate (%) Total (SF) Q2-2018 Q1-2018 Q2-2018 Q1-2018 AVG ($/SF)

The Woodlands
A 46 11,382,385 896,931 7.9% 57,605 0.5% 954,536 8.4% 9.1% 82,201 -20,626 $32.41
B 69 4,461,008 441,031 9.9% 45,976 1.0% 487,007 10.9% 10.9% -165 13,014 $26.24
C 5 131,696 25,356 19.3% 0 0.0% 25,356 19.3% 31.2% 15,718 -3,234 $24.88
Total 120 15,975,089 1,363,318 8.5% 103,581 0.6% 1,466,899 9.2% 9.8% 97,754 -10,846 $30.27

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 Q2 2018

The Woodlands Class A: 129,439 SF or 1.1% Class B: 63,774 SF or 1.4%

400,000 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
 ADVANTAGE
Colliers International Group Inc. (NASDAQ: CIGI) (TSX: CIGI) is a top tier global real estate
services and investment management company operating in 69 countries with a workforce of
more than 12,000 professionals. Colliers is the fastest-growing publicly listed global real
estate services and investment management company, with 2017 corporate revenues of $2.3
billion ($2.7 billion including affiliates). With an enterprising culture and significant employee
ownership and control, Colliers professionals provide a full range of services to real estate
occupiers, owners and investors worldwide, and through its investment management services
platform, has more than $20 billion of assets under management from the world’s most
respected institutional real estate investors.

Colliers professionals think differently, share great ideas and offer thoughtful and innovative
advice to accelerate the success of its clients. Colliers has been ranked among the top 100
global outsourcing firms by the International Association of Outsourcing Professionals for 13
consecutive years, more than any other real estate services firm. Colliers is ranked the
number one property manager in the world by Commercial Property Executive for two years
in a row.

Colliers is led by an experienced leadership team with a proven record of delivering more than
20% annualized returns for shareholders, over more than 20 years.

COMMERCIAL REAL ESTATE SECTORS REPRESENTED

Our philosophy
L A ND
OFF ICE

IND USTRIA L

RE TA IL

HEALTHCA RE

HOTEL
M ULTIFA M ILY

revolves around the fact

that the best $116B
TRANSACTION VALUE

possible results come

from linking our global
enterprise with
local advisors who 2B
understand your SF UNDER MANAGEMENT

business, your market,

and how to
integrate real estate
into a successful $2.7B
IN REVENUE

business strategy.

413
OFFICES

15,400
PROFESSIONALS

SIOR

340
ACCREDITED MEMBERS

4 The Woodlands Research Snapshot

C O L |L I E
Q1R 2018
S I N T| EOffice
R N A T| I Colliers
O N A L GInternational
LOBAL LOCATIONS 69
COUNTRIES