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Q4 2019 | The Woodlands Office Submarket Snapshot

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The Woodlands Class A office submarket records over 350,000 SF of positive absorption in 2019

The Howard Hughes Corp. purchased two Class A office towers totaling 1.4 million SF from Occidental Petroleum Corp. in December 2019. The two towers formerly owned and occupied by Anadarko, have been renamed The Woodlands Towers at The Waterway. The Howard Hughes Corp. announced plans to relocate its corporate headquarters from Two Hughes Landing to one of the buildings located at 9950 Woodloch Forest. Occidental plans to remain as a tenant in the other tower. Howard Hughes is leasing the additional available space.

The Woodlands office submarket posted positive net absorption of 110,058 SF in Q4, pushing the year-end total to 356,879 SF of positive net absorption. Looking back over the year, the largest tenant move-in adding to the positive absorption was the American Bureau of Shipping’s move into 325,000 SF at CityPlace 2. Also, WeWork took occupancy of 55,040 SF in 1725 Hughes Landing, Med-Data moved into 50,000 SF in the Havenwood Office Park and Aon Services will move into 33,312 SF at One Hughes Landing. Unfortunately, gains in net absorption made in the first half of the year were offset due to Southwestern Energy adding 288,609 SF of its space to the market for lease.


Statistical Summary


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.






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.


Q4 2019 | The Woodlands Office Submarket Snapshot

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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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