1. Market Indicators
Class A Class B
VACANCY
NET ABSORPTION
CONSTRUCTION
RENTAL RATE
NEW SUPPLY
Galveston
Bay
225Bellaire
The Woodlands
Humble
Pasadena
IAH
EFD
HOU
Cypress
Tomball
Katy
Brookshire
Lake
Houston
La Porte
146
League City
Kingwood
Atascocita
Spring
Pearland
35
35
Richmond
Waller
Hockley
242
1488
1488
Conroe
Magnolia
Willis
Lake
Conroe
Crosby
CBD
Ship
Channel
Clear Lake
Baytown
Mont Belvieu
Dayton
149
149
Cleveland
105
105
105
321
330
Alvin
Hitchcock
Texas
City
Sugar Land
The Woodlands office market not isolated
from Houston’s current market conditions
Research Snapshot
THE WOODLANDS | OFFICE
Q3 2016
Statistical Summary
1488
2920
249
1314
242
Huffsmith-Kohrville
WoodlandsParkway
ResearchForest
Needham Rd.
Grogan’sMillRd.
Spring Stuebner
GoslingRd.
Kuykendahl
ToHoustonCBD
WOODLANDS SUBMARKET MAP
VACANCY
RENTAL
RATE
Class # of Bldgs. Total (SF) (SF) Rate (%) (SF) Rate (%) Total (SF) Q3-2016 Q2-2016 Q3-2016 Q2-2016 AVG ($/SF)
The Woodlands
A 39 10,926,590 1,319,578 12.1% 75,480 0.7% 1,395,058 12.8% 11.5% 36,452 10,798 $37.05
B 70 4,399,318 431,420 9.8% 69,346 1.6% 500,766 11.4% 11.1% -14,328 -29,786 $24.45
C 4 308,161 25,119 8.2% 0 0.0% 25,119 8.2% 8.2% 0 0 $19.80
Total 113 15,634,069 1,776,117 11.4% 144,826 0.9% 1,920,943 12.3% 11.3% 22,124 -18,988 $32.57
INVENTORY DIRECT VACANCY SUBLEASE VACANCY VACANCY RATE (%)
NET ABSORPTION
(SF)
The Woodlands’ office market continues to feel the effects of Houston’s office
market woes. The Woodlands is not isolated from Houston’s current market
conditions, but does fare better than most of Houston’s other office submarkets.
The Woodlands’ Q3 2016 office market vacancy rate increased 100 basis points
over the quarter, but even with this increase its vacancy rate is still lower than
that of the other major Houston office submarkets.
Leasing activity increased 30.4% over the quarter and 46.3% over the year.
Webber, LLC signed a lease in 1725 Hughes Landing for 46,600 SF. The
company will be moving in April 2017 from its current location at 9303 New
Trails Dr where it occupies nearly 25,000 square feet.
Lisa Bridges Director of Market Research | Houston
HOUSTONTHE WOODLANDS
2. 2 The Woodlands Research Snapshot | Q3 2016 | Office | Colliers International2
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.
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
$18.00
$19.00
$20.00
$21.00
$22.00
$23.00
$24.00
$25.00
$26.00
$27.00
$28.00
Class B Rental Rate and Vacancy Percentage
The Woodlands, TX Class B Rents Class B Vacancy
*Vacancy percentage includes direct and sublease space.
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
Available Sublease Space - The Woodlands
Class A Class B
Available Sublease Space
Q3 2016
Class A: 277,680 SF or 2.5%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
$25.00
$27.00
$29.00
$31.00
$33.00
$35.00
$37.00
$39.00
Class A Rental Rate and Vacancy Percentage
The Woodlands, TX
Class A Rents Class A Vacancy
*Vacancy percentage includes direct and sublease space.