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Q1 2021 | The Woodlands Office Submarket Snapshot

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Key Takeaways

  • Leasing activity increased over the quarter
  • Absorption remained negative
  • Vacancy continued to increase
  • Rental rates decreased
2021_Q1_TheWoodlands_Vacancy Rate    2021_Q1_TheWoodlands_NetAbsorption
 2021_Q1_TheWoodlands_UnderConstruction    2021_Q1_TheWoodlands_LeaseRates


The Woodlands office market vacancy rate increased from 15.3% to 16.8% over the quarter but is still well under the Houston Metro and Houston CBD average vacancy rates of 22.3% and 25.3%, respectively. Construction activity remained steady between quarters and leasing activity increased as COVID restrictions in Texas eased. A large portion of the negative absorption during Q1 can be attributed to Exxon vacating 110,080 SF in 1725 Hughes Landing. Looking ahead, leasing activity will continue to increase and The Woodlands submarket should record some positive absorption by year-end.

Market Indicators 


Historic Comparison


Recent Transactions


Market Fundamentals


Based on a 5-year historical average, the forecast trends to positive net absorption over the year.

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.


Q1 2021 | The Woodlands Office Submarket Snapshot

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Lisa Bridges

Director of Market Research


Lisa joined Colliers in 2010 as Director of Market Research and has 37 years of commercial real estate experience. Lisa initiates proactive market research projects to further the business goals of the company. She writes and prepares 29 market reports annually, including 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 supporting 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 existing and potential clients.

Lisa serves on the Colliers Editorial Board, the Colliers U.S. Research Council, and is a recipient of the Colliers 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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