- Leasing activity increased on a quarterly basis
- Vacancy fell over the quarter by 40 basis points
- Absorption increased during Q2 2021
- Rental rates increase between quarters
The Woodlands office market vacancy rate decreased from 16.8% to 16.4% over the quarter, but is still well under the Houston Metro and Houston CBD average vacancy rates of 23.0% and 25.7%, respectively. The submarket recorded 66,900 square feet of positive net absorption in Q2 2021. The average asking rental rate increased from $34.82 per SF in Q1 2021 to $35.82 per SF in Q2 2021 and the average Class A rental rate increased from $36.52 per SF to $37.11 per SF. Construction activity remained steady between quarters and leasing activity increased.
The forecast in the above graph is based on a trailing 4-quarter average.