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Q3 2022 | The Woodlands Market Report

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Key Takeaways

  • Leasing activity increased quarterly and annually
  • Vacancy rose annually but fell over the quarter
  • Positive net absorption recorded
  • Average rental rate decreased
2022_Q3_The Woodlands_Vacancy Rate  2022_Q3_The Woodlands_net Absorption
 2022_Q3The Woodlands_Under Construction  2022_Q3The Woodlands_Lease Rate


The Woodlands office market vacancy rate decreased over the quarter 40 basis points from 16.6% in Q2 2022 to 16.2% in Q3 2022. The submarket recorded 70,852 square feet positive net absorption in Q3 2022. The average asking rental rate decreased from $34.51 per SF in Q2 2022 to $34.22 per SF in Q3 2022 and the average Class A rental rate fell from $36.51 per SF to $36.25 per SF. A 35,000 RSF Class B building is under construction and no new buildings delivered during Q3 2022. Leasing activity doubled over the quarter, recording 355,730 square feet compared to 174,614 square feet in the previous quarter.

Market Indicators 

 2022_Q3The Woodlands_Market Indicators 

Historic Comparison

 2022_Q3The Woodlands_Historic Comparison 

Market Fundamentals

 2022_Q3The Woodlands_Market Fundamentals 

*The forecast in the above graph is based on a trailing 4-quarter average.


Recent Transaction

*Colliers Transaction

2022_Q3The Woodlands_Rcnt Transactions


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.

2022_Q3_The Woodlands_SearchResultImage_1024x972

Q3 2022 | The Woodlands Market Report

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Related Experts

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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