- Leasing activity increased on a quarterly basis
- Vacancy fell over the quarter by 20 basis points
- Quarterly absorption decreased during Q3 2021
- Rental rates dropped between quarters
The Woodlands office market vacancy rate decreased from 16.2% to 16.0% over the quarter, but is still well under the Houston Metro and Houston CBD average vacancy rates of 23.3% and 26.4%, respectively. The submarket recorded 34,282 square feet of positive net absorption in Q3 2021. The average asking rental rate decreased from $33.82 per SF in Q2 2021 to $33.67 per SF in Q3 2021 and the average Class A rental rate dropped from $37.11 per SF to $36.77 per SF. Construction activity remained steady between quarters and leasing activity increased by 38.5%.
The forecast in the above graph is based on a trailing 4-quarter average.