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Q2 2020 | The Woodlands Office Submarket Snapshot

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The Woodlands office submarket records negative net absorption in Q2 2020

The Woodlands office market posted negative net absorption of 129,342 SF in the second quarter, pushing the mid-year 2020 total net absorption to negative 239,835 SF. Class A space recorded negative net absorption in Q2, however, adding that to the 277,596 SF of positive net absorption recorded in the first quarter brings the Class A mid-year net absorption total to positive 194,307 SF. The Class A negative absorption recorded in Q2 2020 was due to Occidental Petroleum vacating 134,000 SF in The Woodlands Towers at The Waterway.

Since tenants typically do not move into lease space immediately after signing a lease, absorption lags and is reflected in later months. We anticipate absorption totals to trail longer than usual in the short-term due to the “stay at home” orders amid COVID-19, so absorption is likely to remain negative heading into the second half of 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.


Q2 2020 | 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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