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.
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.