The Woodlands office submarket records 385,000 SF of net absorption
The Woodlands office submarket continues to perform exceptionally well, posting 385,540 SF of positive net absorption in Q1 2019. The average vacancy rate decreased 60 basis points over the quarter from 9.2% in Q4 2018 to 8.6%.
American Bureau of Shipping moved into CityPlace 2, occupying the entire 325,000 SF new buildling in Springwoods Village. The Q1 absorption total is the highest recorded in the submarket since Q2 2015.
Leasing activity continues as The Howard Hughes Corporation announced a 180,000 RSF build-to-suit development for Alight Solutions. The four (4) story office building at 8770 New Trails Drive will be completed in Q1 2020. Also, WeWork leased two (2) floors (55,040 RSF) at 1725 Hughes Landing and full floors were leased at Lake Front North and 9303 New Trails Drive.
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.
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