Q3 2020 | The Woodlands Office Submarket Snapshot

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The Woodlands office submarket slowed by pandemic during Q3 2020

The Woodlands office market posted negative net absorption of 130,960 SF in the third quarter, pushing the year-to-date 2020 total net absorption to negative 915,333 SF. The majority of the year-to-date negative absorption can be attributed to Occidental Petroleum vacating 587,000 SF in The Woodlands Towers at The Waterway in Q2 2020.

The average Class A rental rate decreased over the quarter from $39.11 per SF to $36.85 per SF while the average Class B rental rate increased from $33.22 per SF to $33.42 per SF. Leasing activity has declined by 43% between Q2 2020 and Q3 2020.



Statistical Summary


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.



The Woodlands Submarket Map



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.


Q3 2020 | The Woodlands Office Submarket Snapshot

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Lisa Bridges

Director of Market Research | Houston


Lisa joined Colliers in 2010 as Director of Market Research bringing 26 years of commercial real estate experience to the firm. Lisa initiates proactive market research projects to further the business goals of the company. She writes and prepares 29 market reports annually which include quarterly reports on Houston’s retail, office, industrial and healthcare properties.  Further, she prepares statistical ownership reports for various clients as well as an annual Houston Economic Overview. Lisa also creates PowerPoint market presentations, trade journal articles, and other marketing materials in support of the company's business endeavors. She works with senior management in planning the company's marketing strategy and public relations support for local and national conferences, luncheon meetings, recruitment programs, and special events.  Lisa works closely with the company's brokers to develop effective custom market research material specific to both existing and potential clients.

Lisa serves on the Colliers International Editorial Board, the Colliers International U.S. Research Council, is a Colliers Center of Excellence team member and is a recipient of the Colliers International Researcher of the Year Award.

Lisa earned the Commercial Property Research Certification (CPRC) from Colliers University.  CPRC is the first and only accreditation for commercial real estate research professionals. It offers a professional development path to increase strategic and tactical expertise in marketing/research, knowledge of the industry and capabilities with commercial real estate tools.

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