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.
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.