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The Woodlands Market Report | Q4 2022

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Key Takeaways

  • Vacancy dropped quarterly and annually
  • Positive net absorption recorded
  • Average rental rate increased over the quarter
  • Leasing activity decreased quarterly and annually
2022_Q4_The Woodlands_Quad



The Woodlands office market vacancy rate decreased over the quarter 20 basis points from 16.4% in Q3 2022 to 16.2% in Q4 2022. The submarket recorded 44,262 square feet of positive net absorption in Q4 2022. The average asking rental rate increased from $34.34 per SF in Q3 2022 to $34.67 per SF in Q4 2022 and the average Class A rental rate rose from $36.25 per SF to $36.51 per SF. There are two buildings currently under construction and no buildings delivered during the quarter. Leasing activity dropped over the quarter, recording 91,993 square feet compared to 360,589 square feet in the previous quarter.

Market Indicators 

2022_Q4_The Woodlands_Market Indicators

Historic Comparison

 2022_Q4_The Woodlands_Historic Comparison 

Market Fundamentals

  2022_Q4_The Woodlands_Market Fundamentals

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


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_Q4_The Woodlands_SRI_1024x972

The Woodlands Market Report | Q4 2022

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Related Experts

Norm Munoz

Senior Vice President

Houston - The Woodlands

Mr. Munoz has been involved in the commercial real estate business for 33 years.

Since 2011, Norm has exclusively worked with The Howard Hughes Corporation and The Woodlands Development Company as part of the Colliers team responsible for the leasing of their 4.11 million square foot portfolio in The Woodlands, Texas. During this time, Mr. Munoz has been involved in 323 lease transactions for completed office buildings, office buildings under construction and Build-to-Suit projects totaling 3.99 million rentable square feet and more than $832 million.

Norm’s attention to detail, ability to interpret raw data and his market knowledge, coupled with his working experience with the leading commercial brokerage firms, building owners, REITS, developers, property management companies and financial institutions make him an asset to his client’s real estate decision-making process.

Prior to joining Colliers in 2000, Norm worked from 1992 to 1999 with Baca Landata, Inc. (a subsidiary of Stewart Title) and The Baca Group. The Baca companies were the leading local providers for commercial real estate information and as Vice President and Senior Analyst he was responsible for writing the nationally recognized Houston Office Market Guide each quarter, developing new business and servicing clients.

From 1990 to 1992, Mr. Munoz was a Research Analyst with Property Research & Investment Consultants, Inc., responsible for tracking the absorption, lease rates and occupancy each quarter for 1,800 general purpose and medical-professional office buildings. Property Research was the first real estate information company to systematically survey Houston’s office and industrial markets and its methodologies and level of accuracy set the standard for today’s commercial real estate industry.

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