- Leasing activity increased quarterly and annually
- Vacancy rose annually but fell over the quarter
- Positive net absorption recorded
- Average rental rate decreased
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.
*The forecast in the above graph is based on a trailing 4-quarter average.