Market Indicators Class A Class B

VACANCY

NET ABSORPTION

CONSTRUCTION

RENTAL RATE

NEW SUPPLY

The Woodlands

The Woodlands Class A office submarket records positive net absorption in Q1 2020

Research Snapshot

THE WOODLANDS | OFFICEQ1 2020

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) Q1-2020 Q4-2019 Q1-2020 Q4-2019 AVG ($/SF)

The Woodlands

A 57 13,033,408 950,759 7.3% 97,556 0.7% 1,048,315 8.0% 8.9% 277,596 79,704 $38.58B 62 4,231,965 785,057 18.6% 44,018 1.0% 829,075 19.6% 10.3% -391,360 35,556 $32.18C 6 169,558 2,220 1.3% 0 0.0% 2,220 1.3% 0.0% -2,220 500 $19.29Total 125 17,434,931 1,738,036 10.0% 141,574 0.8% 1,879,610 10.8% 9.8% -115,984 115,760 $35.66

INVENTORY DIRECT VACANCYSUBLEASE VACANCY VACANCY RATE (%)

NET ABSORPTION (SF)

The Woodland’s Class A office market posted 277,596 SF of positive net absorption during the first quarter of 2020 as Alight Solutions moved into its 180,000 RSF Build-to-Suit at 8770 New Trails Dr. and Arena Energy took occupancy of 87,231 RSF at Lake Front North (2103 Research Forest Dr.).

In contrast, Class B properties recorded 391,360 SF of negative net absorptionas Aon Services Corporation and Alight Solutions vacated 360,000 RSF at 9500 Lakeside Blvd.

Western Midstream Partners leased 133,948 RSF at The Woodlands Towers at The Waterway (9950 Woodloch Forest Dr.) and will relocate in November 2020.

Lisa Bridges Director of Market Research | Houston

HOUSTONTEXAS THE WOODLANDS

2 The Woodlands Research Snapshot | Q1 2020 | 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.

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Class B Rental Rate and Vacancy Percentage The Woodlands, TX

Class B Rents Class B Vacancy

*Vacancy percentage includes direct and sublease space.

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Available Sublease SpaceThe Woodlands

Class A Class B

Available Sublease SpaceQ1 2020

Class A: 202,047 SF or 1.5% Class B: 56,238 SF or 1.3%

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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 © 2020 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 SupplyWOODLANDS CLASS A OFFICE

WOODLANDS CLASS B OFFICE

-400,000-200,000

0200,000400,000600,000800,000

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

Net Absorption New Supply

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