The Woodlands office submarket performed well over the quarter, posting 124,966 SF of positive net absorption in Q3 2018. The average vacancy rate continued to decrease, dropping from 9.8% in Q2 2018 to 9.1%.
There has been increased leasing activity in the Woodlands market and we expect that there will continue to be more activity through the end of the year. Worksuites, a coworking company, leased 30,355 SF and moved into 2001 Timberloch Place during the third quarter.
Construction continues on City Place 1 (1700 City Plaza 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. The Howard Hughes Corporation acquired the former CB&I campus and renamed the property Lake Front Circle.
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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