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Q2 2021 | The Woodlands Office Submarket Snapshot

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2021_Q2_TheWoodlands_HERO_1536x1040
By Lisa Bridges

Key Takeaways

  • Leasing activity increased on a quarterly basis
  • Vacancy fell over the quarter by 40 basis points
  • Absorption increased during Q2 2021
  • Rental rates increase between quarters
2021_Q2_TheWoodlands_Vacancy Rate   2021_Q2_TheWoodlands_Net Absorption 
 2021_Q2_TheWoodlands_Under Construction    2021_Q2_TheWoodlands_Lease Rates

Highlights

The Woodlands office market vacancy rate decreased from 16.8% to 16.4% over the quarter, but is still well under the Houston Metro and Houston CBD average vacancy rates of 23.0% and 25.7%, respectively. The submarket recorded 66,900 square feet of positive net absorption in Q2 2021. The average asking rental rate increased from $34.82 per SF in Q1 2021 to $35.82 per SF in Q2 2021 and the average Class A rental rate increased from $36.52 per SF to $37.11 per SF. Construction activity remained steady between quarters and leasing activity increased.

Market Indicators 

2021_Q2_TheWoodlands_Market Indicators 

Historic Comparison

2021_Q2_TheWoodlands_Historic Comparison 

Market Fundamentals

2021_Q2_TheWoodlands_Market Fundamentals

The forecast in the above graph is based on a trailing 4-quarter average.

 

Recent Transactions

*Source: CoStar

2021_Q2_TheWoodlands_Recent Transactions 

The Woodlands Submarket Map

2021_Q2_TheWoodlands_SubmarketMap 
 

Q1 2018 Woodlands Market Indicators

 

Q1 2018 Woodlands Market Indicators

Leasing activity continues to be healthy, with 55 leases completed in Q3
compared to 44 leases completed in Q2 2019. A majority of those tenants
that completed leases in Q3 will relocate during Q4 2019 and Q1 2020, thus
increasing absorption in the near-term. Aon Services Corporation signed a lease
for 33,312 SF at One Hughes Landing and will move in Q1 2020. PTW Energy
Services leased 19,446 SF in Sierra Pines office building and is expected to move
into the space in Q1 2020.
The Woodlands office submarket recorded 285,420 SF of negative net absorption,
which can be attributed to Southwestern Energy putting its 10000 Energy Drive
South Tower on the market for lease. Without the addition of the 288,609 SF
South Tower, the submarket would have recorded positive net absorption.
2021_Q2_TheWoodlands_SearchResultImage_1024x972

Q2 2021 | The Woodlands Office Submarket Snapshot

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Related Experts
Norm Munoz | Colliers | Houston - The Woodlands

Norm Munoz

Executive Vice President

Houston - The Woodlands

+1 713 830 2136
+1 713 417 8306
Email

Mr. Munoz has been involved in the commercial real estate business for 33 years.

Since 2011, Norm has exclusively worked with The Howard Hughes Corporation and The Woodlands Development Company as part of the Colliers team responsible for the leasing of their 4.11 million square foot portfolio in The Woodlands, Texas. During this time, Mr. Munoz has been involved in 323 lease transactions for completed office buildings, office buildings under construction and Build-to-Suit projects totaling 3.99 million rentable square feet and more than $832 million.

Norm’s attention to detail, ability to interpret raw data and his market knowledge, coupled with his working experience with the leading commercial brokerage firms, building owners, REITS, developers, property management companies and financial institutions make him an asset to his client’s real estate decision-making process.

Prior to joining Colliers in 2000, Norm worked from 1992 to 1999 with Baca Landata, Inc. (a subsidiary of Stewart Title) and The Baca Group. The Baca companies were the leading local providers for commercial real estate information and as Vice President and Senior Analyst he was responsible for writing the nationally recognized Houston Office Market Guide each quarter, developing new business and servicing clients.

From 1990 to 1992, Mr. Munoz was a Research Analyst with Property Research & Investment Consultants, Inc., responsible for tracking the absorption, lease rates and occupancy each quarter for 1,800 general purpose and medical-professional office buildings. Property Research was the first real estate information company to systematically survey Houston’s office and industrial markets and its methodologies and level of accuracy set the standard for today’s commercial real estate industry.

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