The Woodlands office market not isolated from Houston's current ...
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Market Indicators Class A Class B VACANCY NET ABSORPTION CONSTRUCTION RENTAL RATE NEW SUPPLY The Woodlands Gal 225 Bellaire The Woodlands Humble Pasadena IAH EFD HOU Cypress Tomball Katy Brookshire Lake Houston La Porte 146 Kingwood Atascocita Spring Pearland 35 Richmond Waller Hockley 242 1488 1488 Magnolia Crosby CBD Ship Channel Clear Lake Baytown Mont B 149 321 330 Sugar Land The Woodlands’ office submarket remains positive during the third quarter Research Snapshot THE WOODLANDS | OFFICE Q3 2017 Statistical Summary 1488 2920 249 1314 242 H u f fsmith-Ko h rville Woodlands Parkway Research Forest Needham Rd. Grogan’s Mill Rd. Spring Stuebner Gosling Rd. Kuykendahl To Houston CBD WOODLANDS SUBMARKET MAP VACANCY RENTAL RATE Class # of Bldgs. Total (SF) (SF) Rate (%) (SF) Rate (%) Total (SF) Q3-2017 Q2-2017 Q3-2017 Q2-2017 AVG ($/SF) The Woodlands A 38 10,685,124 1,056,319 9.9% 98,869 0.9% 1,155,188 10.8% 10.9% 8,578 98,411 $35.04 B 70 4,429,358 457,278 10.3% 24,895 0.6% 482,173 10.9% 11.6% 30,743 -11,919 $25.58 C 5 131,696 34,649 26.3% 0 0.0% 34,649 26.3% 30.9% 6,065 0 $25.27 Total 113 15,246,178 1,548,246 10.2% 123,764 0.8% 1,672,010 11.0% 11.3% 45,386 86,492 $32.03 INVENTORY DIRECT VACANCY SUBLEASE VACANCY VACANCY RATE (%) NET ABSORPTION (SF) The Woodlands’ office submarket remains positive during the third quarter with steady vacancy and positive absorption, while other Houston office submarkets continue to see high vacancy and negative net absorption. Over the quarter, The Woodlands’ average vacancy rate decreased by 30 basis points and leasing activity remained steady. Sabinal Energy leased 27,390 square feet in Three Hughes Landing in September. Construction continues on CityPlace in Springwoods Village where tech giant HP Inc. preleased 378,000 SF and American Bureau of Shipping leased 326,800 SF of office space. Completion of the buildings is expected in the latter part of 2018. Lisa Bridges Director of Market Research | Houston HOUSTON TEXAS THE WOODLANDS
Transcript of The Woodlands office market not isolated from Houston's current ...
Market Indicators Class A Class B
VACANCY
NET ABSORPTION
CONSTRUCTION
RENTAL RATE
NEW SUPPLY
The Woodlands
GalvestonBay
225Bellaire
The Woodlands
Humble
Pasadena
IAH
EFD
HOU
Cypress
Tomball
KatyBrookshire
LakeHouston
La Porte146
League City
Kingwood
Atascocita
Spring
Pearland
35
35
Richmond
WallerHockley
2421488
1488
Conroe
Magnolia
WillisLake
Conroe
Crosby
CBD
Ship Channel
Clear Lake
Baytown
Mont Belvieu
Dayton
149
149
Cleveland105
105
105
321
330
Alvin
Hitchcock
TexasCity
Sugar Land
The Woodlands’ office submarket remains positive during the third quarter
Research Snapshot
THE WOODLANDS | OFFICEQ3 2017
Statistical Summary
1488
2920249
1314
242
Huffsmith-Kohrville
WoodlandsParkway
ResearchForest
Needham Rd.
Grogan’s Mill Rd.
Spring Stuebner
Gosling Rd.Kuykendahl
To Houston CBD
WOODLANDS SUBMARKET MAP
VACANCYRENTAL
RATE
Class # of Bldgs. Total (SF) (SF) Rate (%) (SF) Rate (%) Total (SF) Q3-2017 Q2-2017 Q3-2017 Q2-2017 AVG ($/SF)
The Woodlands
A 38 10,685,124 1,056,319 9.9% 98,869 0.9% 1,155,188 10.8% 10.9% 8,578 98,411 $35.04B 70 4,429,358 457,278 10.3% 24,895 0.6% 482,173 10.9% 11.6% 30,743 -11,919 $25.58C 5 131,696 34,649 26.3% 0 0.0% 34,649 26.3% 30.9% 6,065 0 $25.27Total 113 15,246,178 1,548,246 10.2% 123,764 0.8% 1,672,010 11.0% 11.3% 45,386 86,492 $32.03
INVENTORY DIRECT VACANCYSUBLEASE VACANCY
VACANCY RATE (%)
NET ABSORPTION (SF)
The Woodlands’ office submarket remains positive during the third quarter with steady vacancy and positive absorption, while other Houston office submarkets continue to see high vacancy and negative net absorption. Over the quarter, The Woodlands’ average vacancy rate decreased by 30 basis points and leasing activity remained steady. Sabinal Energy leased 27,390 square feet in Three Hughes Landing in September.
Construction continues on CityPlace in Springwoods Village where tech giant HP Inc. preleased 378,000 SF and American Bureau of Shipping leased 326,800 SF of office space. Completion of the buildings is expected in the latter part of 2018.
Lisa Bridges Director of Market Research | Houston
HOUSTONTEXAS THE WOODLANDS
2 The Woodlands Research Snapshot | Q3 2017 | 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 Space - The Woodlands
Class A Class B
Available Sublease Space Q3 2017
Class A: 156,414 SF or 1.4% Class B: 76,872 SF or 1.7%
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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 [email protected]
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 © 2017 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
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200,000400,000600,000800,000
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Net Absorption New Supply
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-100,000
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150,000
200,000
Net Absorption New Supply
Market Indicators Class A Class B
VACANCY
NET ABSORPTION
CONSTRUCTION
RENTAL RATE
NEW SUPPLY
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 continues to be a bright spot among Houston
Research Snapshot
THE WOODLANDS | OFFICEQ2 2017
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) Q2-2017 Q1-2017 Q2-2017 Q1-2017 AVG ($/SF)
The Woodlands
A 38 10,683,106 1,117,232 10.5% 139,281 1.3% 1,256,513 11.8% 11.8% 98,411 83,394 $36.74B 70 4,429,772 496,556 11.2% 16,360 0.4% 512,916 11.6% 11.3% -11,919 -36,891 $25.33C 5 131,696 40,714 30.9% 0 0.0% 40,714 30.9% 30.9% 0 -12,951 $24.60Total 113 15,244,574 1,654,502 10.9% 155,641 1.0% 1,810,143 11.9% 11.9% 86,492 33,552 $32.41
INVENTORY DIRECT VACANCYSUBLEASE VACANCY VACANCY RATE (%)
NET ABSORPTION (SF)
The Woodlands’ office submarket has been a bright spot among Houston submarkets during the past several years. Most of Houston’s submarkets have seen rising vacancy and negative net absorption, while The Woodlands’ submarket has experienced quite the opposite. Over the quarter, The Woodlands’ average vacancy rate decreased by 60 basis points. Leasing activity remained steady and net absorption was positive.
Construction continues on CityPlace in Springwoods Village where tech giant HP Inc. preleased 378,000 SF and American Bureau of Shipping leased 326,800 SF of office space. Completion of the buildings is expected in the latter part of 2018.
Lisa Bridges Director of Market Research | Houston
HOUSTONTEXAS THE WOODLANDS
2 The Woodlands Research Snapshot | Q2 2017 | 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 Space - The Woodlands
Class A Class B
Available Sublease SpaceQ2 2017
Class A: 201,167 SF or 1.8%Class B: 115,030 SF or 2.6%
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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 [email protected]
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 © 2017 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
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200,000400,000600,000800,000
1,000,0001,200,0001,400,0001,600,0001,800,0002,000,000
Net Absorption New Supply
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-100,000
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200,000
Net Absorption New Supply
Market Indicators Class A Class B
VACANCY
NET ABSORPTION
CONSTRUCTION
RENTAL RATE
NEW SUPPLY
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 market sees uptick in leasing activity and absorption in Q4 2016
Research Snapshot
THE WOODLANDS | OFFICEQ4 2016
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) Q4-2016 Q3-2016 Q4-2016 Q3-2016 AVG ($/SF)
The Woodlands
A 39 10,926,590 1,305,729 12.0% 39,842 0.4% 1,345,571 12.3% 12.8% 49,487 36,452 $36.43B 70 4,407,883 399,741 9.1% 62,813 1.4% 462,554 10.5% 11.5% 46,507 -18,621 $24.30C 5 328,281 17,763 5.4% 0 0.0% 17,763 5.4% 8.6% 10,506 0 $29.98Total 114 15,662,754 1,723,233 11.0% 102,655 0.7% 1,825,888 11.7% 12.3% 106,500 17,831 $33.55
INVENTORY DIRECT VACANCY SUBLEASE VACANCY VACANCY RATE (%) NET ABSORPTION (SF)
The Woodlands’ office market fared better than most of Houston’s office submarkets, posting the third highest amount of net positive absorption in Q4 2016. The Woodlands’ Q4 2016 office market vacancy rate decreased 50 basis points over the quarter and by 220 basis points annually.
Leasing activity increased 6.4% over the quarter and 54.6% over the year. Tech giant HP Inc. preleased 378,000 SF of office space at Springwoods Village, a 2,000-acre mixed-use community just south of The Woodlands proper. Construction is scheduled to begin in early 2017 and is expected to be completed in the third quarter of 2018. Jones & Carter leased 27,000 square feet in Sierra Pines II and Hughes Landing reported leases totaling nearly 47,000 square feet.
Lisa Bridges Director of Market Research | Houston
HOUSTONTHE WOODLANDS
2 The Woodlands Research Snapshot | Q4 2016 | 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 Space - The Woodlands
Class A Class B
Available Sublease SpaceQ4 2016
Class A: 225,501 SF or 2.1%Class B: 156,042 SF or 3.5%
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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 [email protected]
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 © 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 | 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
-200,0000
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1,000,0001,200,0001,400,0001,600,0001,800,0002,000,000
Net Absorption New Supply
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-100,000
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100,000
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Market IndicatorsClass A Class B
VACANCY
NET ABSORPTION
CONSTRUCTION
RENTAL RATE
NEW SUPPLY
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 market not isolated from Houston’s current market conditions
Research Snapshot
THE WOODLANDS | OFFICEQ3 2016
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) Q3-2016 Q2-2016 Q3-2016 Q2-2016 AVG ($/SF)
The Woodlands
A 39 10,926,590 1,319,578 12.1% 75,480 0.7% 1,395,058 12.8% 11.5% 36,452 10,798 $37.05B 70 4,399,318 431,420 9.8% 69,346 1.6% 500,766 11.4% 11.1% -14,328 -29,786 $24.45C 4 308,161 25,119 8.2% 0 0.0% 25,119 8.2% 8.2% 0 0 $19.80Total 113 15,634,069 1,776,117 11.4% 144,826 0.9% 1,920,943 12.3% 11.3% 22,124 -18,988 $32.57
INVENTORY DIRECT VACANCY SUBLEASE VACANCY VACANCY RATE (%)NET ABSORPTION
(SF)
The Woodlands’ office market continues to feel the effects of Houston’s office market woes. The Woodlands is not isolated from Houston’s current market conditions, but does fare better than most of Houston’s other office submarkets. The Woodlands’ Q3 2016 office market vacancy rate increased 100 basis points over the quarter, but even with this increase its vacancy rate is still lower than that of the other major Houston office submarkets.
Leasing activity increased 30.4% over the quarter and 46.3% over the year. Webber, LLC signed a lease in 1725 Hughes Landing for 46,600 SF. The company will be moving in April 2017 from its current location at 9303 New Trails Dr where it occupies nearly 25,000 square feet.
Lisa Bridges Director of Market Research | Houston
HOUSTONTHE WOODLANDS
2 The Woodlands Research Snapshot | Q3 2016 | 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 Space - The Woodlands
Class A Class B
Available Sublease SpaceQ3 2016
Class A: 277,680 SF or 2.5%
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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 [email protected]
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 © 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 | 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
-200,0000
200,000400,000600,000800,000
1,000,0001,200,0001,400,0001,600,0001,800,0002,000,000
Net Absorption New Supply
-150,000
-100,000
-50,000
0
50,000
100,000
150,000
200,000
Net Absorption New Supply
The Woodlands Office Market
Research Snapshot
THE WOODLANDS | OFFICEQ1 2016
Lisa Bridges Director of Market Research | Houston
The Woodlands 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
RATEClass # of Bldgs. Total (SF) (SF) Rate (%) (SF) Rate (%) Total (SF) Q1-2016 Q4-2015 Q1-2016 Q4-2015 AVG ($/SF)
The Woodlands
A 37 10,501,457 852,743 8.1% 54,036 0.5% 906,779 8.6% 9.0% 36,926 442,284 $35.95
B 70 4,398,619 420,049 9.5% 64,167 1.5% 484,216 11.0% 11.6% 27,739 -71,790 $23.88
C 4 308,161 25,119 8.2% 0 0.0% 25,119 8.2% 0.3% -24,119 0 $19.80
Total 111 15,208,237 1,297,911 8.5% 118,203 0.8% 1,416,114 9.3% 9.6% 40,546 370,494 $30.06
INVENTORY DIRECT VACANCY SUBLEASE VACANCY VACANCY RATE NET ABSORPTION
Q1 2016 Submarket Highlights
The greater Houston metro is home to most major energy companies and its economy and real estate market can be positively or negatively affected by the price of oil. The Q1 2016 office market continues to struggle due to the low price of oil, but it appears to be performing better than expected in a $40 per barrel economy. The Woodlands is not isolated from Houston’s current market conditions, but does fare better than most of Houston’s other office submarkets. The Woodlands Q1 2016 office market vacancy rates decreased over the quarter with the exception of class C product. Net absorption remained positive and class A rental rates rose.
Office Market Indicators
Class A Class B
VACANCY
NET ABSORPTION
CONSTRUCTION
RENTAL RATE
NEW SUPPLY
The Woodlands
“In The News”The Texas Department of Transportation has recently completed the segments of the Grand Parkway (SH 99), from Interstate 10 West to U.S. Highway 59 North.
2 The Woodlands Research Snapshot | Q1 2016 | 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.
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
$18.00
$19.00
$20.00
$21.00
$22.00
$23.00
$24.00
$25.00
$26.00
$27.00
$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
Available Sublease Space - The Woodlands
Class A Class B
Available Sublease SpaceQ1 2016
Class A: 330,038 SF or 3.1%Class B: 138,558 SF or 3.2%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
$25.00
$27.00
$29.00
$31.00
$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 [email protected]
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 © 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 | 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
-200,0000
200,000400,000600,000800,000
1,000,0001,200,0001,400,0001,600,0001,800,0002,000,000
Net Absorption New Supply
-150,000
-100,000
-50,000
0
50,000
100,000
150,000
200,000Net Absorption New Supply
The Woodlands Office Market
Research Snapshot
THE WOODLANDS | OFFICEQ3 2015
Lisa Bridges Director of Market Research | Houston
Q3 2015 Submarket Highlights > The Woodlands Development Company signed a lease for 25,576 SF in Two Hughes Landing.
> Class A rents decreased slightly over the quarter while class B rents remained flat.
> Construction continues on 1735 Hughes Landing Blvd as well as on Three Hughes Landing. Both buildings are expected to deliver in 2016.
> Construction of 1725 Hughes Landing will be completed in Q4 2015 and there is a little over 162,120 SF of available space.
The Woodlands 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) Q3-2015 Q2-2015 Q3-2015 Q2-2015 AVG ($/SF)
The Woodlands
A 32 9,251,755 370,598 4.0% 44,652 0.5% 415,250 4.5% 5.2% 68,282 452,559 $35.19B 71 4,451,880 405,767 9.1% 27,353 0.6% 433,120 9.7% 10.5% 54,740 -115,935 $24.76C 5 338,038 1,000 0.3% 0 0.0% 1,000 0.3% 0.3% 0 0 $19.80Total 108 14,041,673 777,365 5.5% 72,005 0.5% 849,370 6.0% 6.8% 123,022 336,624 $29.27
INVENTORY DIRECT VACANCY SUBLEASE VACANCY VACANCY RATE NET ABSORPTION
Office Market Indicators Class A Class B
VACANCY
NET ABSORPTION
CONSTRUCTION
RENTAL RATE
NEW SUPPLY
The Woodlands
“In The News”Innovators in the Woods, a partnership between Houston Advanced Research Center in The Woodlands and Houston Technology Center North, is now open and accepting applicants to pitch their energy technology ideas. The new incubator program fosters scientific start-ups, to promote the growth of entrepreneurial susttainable energy techonology companies in The Woodlands area.
2 The Woodlands Research Snapshot | Q3 2015 | 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.
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
$18.00
$19.00
$20.00
$21.00
$22.00
$23.00
$24.00
$25.00
$26.00
$27.00
$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
Available Sublease Space - The Woodlands
Class A Class B
Available Sublease SpaceQ3 2015
Class A: 261,433 SF or 2.4%Class B: 107,815 SF or 2.3%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
$25.00
$27.00
$29.00
$31.00
$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 [email protected]
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 © 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 | 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
-200,000
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000Net Absorption New Supply
-150,000
-100,000
-50,000
0
50,000
100,000
150,000
200,000Net Absorption New Supply
The Woodlands Office Market
Research Snapshot
THE WOODLANDS | OFFICEQ2 2015
Lisa Bridges Director of Market Research | Houston
Q2 2015 Submarket Highlights
> ExxonMobil completed its relocation into the new 3.5M SF North Houston campus.
> Three Hughes Landing, a 12-story 321,000-SF Class A office building is currently under construction and is projected to deliver in November 2015.
> Class A rents increased slightly over the quarter while class B rents remained flat.
> Positive net absorption and new supply reflected the continuation of ExxonMobil’s relocation into phase III of its new campus.
> Construction activity remains slow as proposed projects are still on hold due to the slump in energy prices.
Woodlands Submarket Map
1488
2920249
1314
242
Huffsmith-Kohrville
WoodlandsParkway
ResearchForest
Needham Rd.
Grogan’s Mill Rd.
Spring Stuebner
Gosling Rd.Kuykendahl
To Houston CBD
The Woodlands In The News
Memorial Hermann recently announced plans for $25 million worth of expansions and improvements. The new amenities will improve the hospital’s heart and vascular, neuroscience, trauma and orthopedics departments.
Office Market Indicators Class A Class B
VACANCY
NET ABSORPTION
CONSTRUCTION
RENTAL RATE
NEW SUPPLY
The Woodlands
22 The Woodlands Research Snapshot | Q2 2015 | Office | Colliers International
The Woodlands Summary
Absorption and New Supply
Woodlands Class A Office
Woodlands Class B Office
INVENTORY DIRECT VACANCY SUBLEASE VACANCY VACANCY VACANCY RATE (%) NET ABSORPTION
(SF)RENTAL
RATE
CLASS # OF BLDGS.
TOTAL (SF) (SF) RATE
(%) (SF) RATE (%)
TOTAL (SF) Q2-2015 Q1-2015 Q2-2015 Q1-2015 AVG
($/SF)
THE WOODLANDS A 32 9,251,755 434,129 4.7% 49,403 0.5% 483,532 5.2% 5.0% 452,559 1,671,730 $35.60B 70 4,426,517 442,448 10.0% 33,340 0.8% 475,788 10.7% 8.1% -115,935 762 $24.66C 5 338,038 1,000 0.3% 0 0.0% 1,000 0.3% 0.3% 0 0 $19.80Total 107 14,016,310 877,577 6.3% 82,743 0.6% 960,320 6.9% 5.9% 336,624 1,672,492 $30.28
-200,000
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000Net Absorption New Supply
-150,000
-100,000
-50,000
0
50,000
100,000
150,000
200,000Net Absorption New Supply
3 The Woodlands Research Snapshot | Q2 2015 | Office | Colliers International3
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.
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
$18.00
$19.00
$20.00
$21.00
$22.00
$23.00
$24.00
$25.00
$26.00
$27.00
$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
Available Sublease Space - The Woodlands
Class A Class B
Available Sublease Space Q2 2015 Class A: 194,363 SF or 2.0% Class B: 117,331 SF or 2.5%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
$25.00
$27.00
$29.00
$31.00
$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.
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.
About Colliers InternationalColliers International is a global leader in commercial real estate services, with more than 16,300 professionals operating out of 502 offices in 67 countries. A subsidiary of FirstService Corporation, Colliers International delivers a full range of services to real estate occupiers, owners and investors worldwide, including global corporate solutions, brokerage, property and asset management, hotel investment sales and consulting, valuation, consulting and appraisal services, mortgage banking and insightful research. Colliers International has been recognized and ranked by the International Association of Outsourcing Professionals’ Global Outsourcing 100 for 10 consecutive years, more than any other real estate services firm.
colliers.com
502 offices in 67 countries on 6 continentsUnited States: 140 Canada: 31 Latin America: 24 Asia Pacific: 199 EMEA: 108
$2.3billion in annual revenue
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16,300professionals and staff
MARKET CONTACT:Lisa BridgesDirector of Market Research | Houston+1 713 830 [email protected]
Colliers International | The WoodlandsTwo Hughes Landing1790 Hughes Landing Blvd.The Woodlands, TX | USA
+1 713 830 4011
www.colliers.com/TheWoodlands
Q1 2015 OFFICE MARKET INDICATORSTHE WOODLANDS
CLASS A CLASS B
NET ABSORPTION
VACANCY
RENTAL RATE
CONSTRUCTION
NEW SUPPLY
RESEARCH SNAPSHOTTHE WOODLANDS
Q1 2015 | OFFICE
The Woodlands Office Market Q1 2015 SUBMARKET HIGHLIGHTS• ExxonMobil continues relocation into new North Houston campus, contributing 1.5M SF to Q1 2015 absorption.
• Three Hughes Landing, a 12-story 321,000-SF Class A office building is currently under construction and is projected to deliver in November 2015.
• Class A rents remained flat over the quarter while class B rents increased.• Positive net absorption and new supply reflected the continuation of ExxonMobil’s relocation into new buildings within its new campus.
• Sublease space increased as oil and gas company mergers and acquistions increased and hiring was put on hold.
• Construction activity slowed as proposed projects were put on hold due to the slump in energy prices.
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
DOWNLOAD
To download a copy of this report,please visit:
www.colliers.com/texas/thewoodlands/marketreports/officereport
P. 2 | COLLIERS INTERNATIONAL
ABSORPTION AND NEW SUPPLY
-200,000
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000Net Absorption New Supply
WOODLANDS CLASS A OFFICE
WOODLANDS CLASS B OFFICE
-100,000
-50,000
0
50,000
100,000
150,000
200,000Net Absorption New Supply
THE WOODLANDS SUMMARY
VACANCYRENTAL
RATE
Class # of Bldgs. Total (SF) (SF) Rate (%) (SF) Rate (%) Total (SF) Q1-2015 Q4-2014 Q1-2015 Q4-2014 AVG ($/SF)
The Woodlands
A 32 8,891,122 385,151 4.3% 50,940 0.6% 436,091 4.9% 7.1% 1,671,730 1,621,957 $34.68B 71 4,353,344 373,792 8.6% 19,963 0.5% 393,755 9.0% 9.1% 2,860 -10,689 $24.60C 5 338,038 1,000 0.3% 0 0.0% 1,000 0.3% 0.3% 0 0 $19.80Total 108 13,582,504 759,943 5.6% 70,903 0.5% 830,846 6.1% 7.8% 1,674,590 1,611,268 $29.51
INVENTORY DIRECT VACANCY SUBLEASE VACANCY VACANCY RATE (%)NET ABSORPTION
(SF)
RESEARCH SNAPSHOT | Q1 2015 | OFFICE | THE WOODLANDS
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
$18.00
$19.00
$20.00
$21.00
$22.00
$23.00
$24.00
$25.00
$26.00
$27.00
$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
Available Sublease Space - The Woodlands
Class A Class B
Available Sublease SpaceQ1 2015
Class A: 195,818 SF or 2.2%Class B: 95,481 SF or 1.9%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
$25.00
$27.00
$29.00
$31.00
$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.
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.
RESEARCH SNAPSHOT | Q1 2015 | OFFICE | THE WOODLANDS
COLLIERS INTERNATIONAL | P. 3
P. 4 | COLLIERS INTERNATIONALwww.colliers.com/houston/houston/houston
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The foundation of our service is the strength and depth of our specialists. Our clients depend on our ability to draw on years of direct experience in the local market. Our professionals know their communities and the industry inside and out. Whether you are a local firm or a global organization, we provide creative solutions for all your real estate needs.
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THE WOODLANDS OFFICE:
Two Hughes Landing1790 Hughes Landing Blvd.Suite 250The Woodlands, TX 77380TEL +1 713 830 4011FAX +1 713 986 4434
RESEARCHER:
Lisa BridgesDirector of Market Research1233 W. Loop South, Suite 900Houston, TX 77027TEL +1 713 830 2125FAX +1 713 986 4425
Copyright © 2015
Colliers International.Information herein has been obtained from sources deemed reliable, however its
accuracy cannot be guaranteed. The user is required to conduct their own due diligence and verification.
RESEARCH SNAPSHOT | Q1 2015 | OFFICE | THE WOODLANDS
