Market Indicators Class A Class B

VACANCY

NET ABSORPTION

CONSTRUCTION

RENTAL RATE

NEW SUPPLY

The Woodlands

GalvestonBay

225Bellaire

The Woodlands

Humble

Pasadena

IAH

EFD

HOU

Cypress

Tomball

KatyBrookshire

LakeHouston

La Porte146

League City

Kingwood

Atascocita

Spring

Pearland

35

35

Richmond

WallerHockley

2421488

1488

Conroe

Magnolia

WillisLake

Conroe

Crosby

CBD

Ship Channel

Clear Lake

Baytown

Mont Belvieu

Dayton

149

149

Cleveland105

105

105

321

330

Alvin

Hitchcock

TexasCity

Sugar Land

The Woodlands office submarket snapshot

Research Snapshot

THE WOODLANDS | OFFICEQ3 2018

STATISTICAL SUMMARY

1488

2920249

1314

242

Huffsmith-Kohrville

WoodlandsParkway

ResearchForest

Needham Rd.

Grogan’s Mill Rd.

Spring Stuebner

Gosling Rd.Kuykendahl

To Houston CBD

WOODLANDS SUBMARKET MAP

VACANCYRENTAL

RATE

Class # of Bldgs. Total (SF) (SF) Rate (%) (SF) Rate (%) Total (SF) Q3-2018 Q2-2018 Q3-2018 Q2-2018 AVG ($/SF)

The Woodlands

A 50 11,876,005 1,034,852 8.7% 60,566 0.5% 1,095,418 9.2% 9.7% 53,365 -34,305 $33.12B 69 4,498,034 385,807 8.6% 10,575 0.2% 396,382 8.8% 10.0% 52,503 13,746 $26.29C 5 131,696 6,258 4.8% 0 0.0% 6,258 4.8% 19.3% 19,098 15,718 $25.08Total 124 16,505,735 1,426,917 8.6% 71,141 0.4% 1,498,058 9.1% 9.8% 124,966 -4,841 $31.24

INVENTORY DIRECT VACANCY SUBLEASE VACANCY VACANCY RATE (%)NET ABSORPTION

(SF)

The Woodlands office submarket performed well over the quarter, posting 124,966 SF of positive net absorption in Q3 2018. The average vacancy rate continued to decrease, dropping from 9.8% in Q2 2018 to 9.1%.

There has been increased leasing activity in the Woodlands market and we expect that there will continue to be more activity through the end of the year. Worksuites, a coworking company, leased 30,355 SF and moved into 2001 Timberloch Place during the third quarter.

Construction continues on City Place 1 (1700 City Plaza Dr.) in Springwoods Village. The 5-story, 141,700 SF building with 122,600 sf of office space is estimated to be completed in Q2 2019. The Howard Hughes Corporation acquired the former CB&I campus and renamed the property Lake Front Circle.

Lisa Bridges Director of Market Research | Houston

HOUSTONTEXAS THE WOODLANDS

2 The Woodlands Research Snapshot | Q3 2018 | Office | Colliers International2

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.

0.0

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$18.00

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$28.00

Class B Rental Rate and Vacancy Percentage The Woodlands, TX

Class B Rents Class B Vacancy

*Vacancy percentage includes direct and sublease space.

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Available Sublease SpaceThe Woodlands

Class A Class B

Available Sublease SpaceQ3 2018

Class A: 112,471 SF or 0.9% Class B: 32,055 SF or 0.7%

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$33.00

$35.00

$37.00

$39.00

Class A Rental Rate and Vacancy Percentage The Woodlands, TX

Class A Rents Class A Vacancy

*Vacancy percentage includes direct and sublease space.

3 North American Research & Forecast Report | Q4 2014 | Office Market Outlook | Colliers International

Copyright © 2015 Colliers International.The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.

Colliers International | Market000 Address, Suite # 000 Address, Suite #+1 000 000 0000colliers.com/<<market>>

FOR MORE INFORMATIONLisa BridgesDirector of Market Research | Houston+1 713 830 2125lisa.bridges@colliers.com

3 North American Research & Forecast Report | Q4 2014 | Office Market Outlook | Colliers International

Copyright © 2015 Colliers International.The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.

Colliers International | Market000 Address, Suite # 000 Address, Suite #+1 000 000 0000colliers.com/<<market>>

3 North American Research & Forecast Report | Q4 2014 | Office Market Outlook | Colliers International

Copyright © 2018 Colliers International.The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.

Colliers International | The Woodlands1790 Hughes Landing Blvd., Suite 250The Woodlands, TX 77380+1 713 830 4011colliers.com/thewoodlands

Absorption and New Supply

Woodlands Class A Office

Woodlands Class B Office

-200,0000

200,000400,000600,000800,000

1,000,0001,200,0001,400,0001,600,0001,800,0002,000,0002,200,0002,400,0002,600,000

Net Absorption New Supply

-150,000

-100,000

-50,000

0

50,000

100,000

150,000

200,000

Net Absorption New Supply

4 The Woodlands Research Snapshot | Q3 2018 | Office | Colliers International4

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COMMERCIAL REAL ESTATE SECTORS REPRESENTED

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$116BTRANSACTION VALUE

2BSF UNDER MANAGEMENT

$2.7BIN REVENUE

413OFFICES

15,400PROFESSIONALS

340ACCREDITED MEMBERS

69COUNTRIES

SIOR

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