Year End 2012 Woodlands Office and Land Report

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Year End 2012 Woodlands Office and Land Report

  1. 1. RESEARCH & FORECAST REPORT THE WOODLANDS www.colliers.com/houston The Woodlands Office Market CLASS A VACANCY DROPS BELOW 1.0% The Woodlands submarket, one of Houston’s top suburban office submarkets, saw a flurry of activity in 2012. The Woodlands office submarket contributed 12% of Houston’s 2012 total suburban positive net absorption, which is impressive since the submarket has only a 4.4% share of Houston’s suburban office inventory with a 5.0% overall vacancy rate. Leasing activity has been key to the year-end positive net absorption of 380,482 square feet, pushing vacancy rates down and leaving very little available space for tenant growth. Expansion in the energy sector has spurred demand for office space in Houston and The Woodlands submarket, which is quickly becoming the newest Energy Corridor. Developers have responded by planning and starting new projects. ExxonMobil began construction of its 3.5 million SF north Houston campus just south of The Woodlands. The Woodlands Development Company broke ground Q1 2012 on 3 Waterway Square Place, a 233,000 SF Class A office building, where Nexeo Solutions pre-leased 106,000 SF, Waste Connections pre-leased 50,000 SF, and Energy Alloys pre-leased 35,000 SF. Anadarko is expanding their headquarters in The Woodlands adding a 550,000 SF office tower adjacent to their existing 818,000 SF office tower. Warmack Investments began construction in September on a 300,000 SF Class A office building in Research Forest Lakeside Office Park, which Talisman USA has pre-leased 150,000 SF. An important driver of these market trends has been a healthy economic climate conducive to increased business activity. The Houston metropolitan area led the state in job growth, gaining 85,000 jobs in 2012, representing a solid 3.2% growth rate. With continued expansion in the energy industry and a strong housing market, the Woodlands submarket is expected to remain healthy for the near and long-term. 2012 OFFICE MARKET INDICATORS THE WOODLANDS 2012 OFFICE MARKET HIGHLIGHTS THE WOODLANDS • The Woodlands Development Co begins construction on 197,000 SF One Hughes Landing • Layne Christensen Co pre-leases 51,000 SF in One Hughes Landing • The Woodlands Development Co pre-leases 93% of 3 Waterway Place prior to delivery, June 2013 CLASS A CLASS B NET ABSORPTION VACANCY RENTAL RATE CONSTRUCTION — NEW SUPPLY — — YEAR-END 2012 | OFFICE 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% -100,000 -50,000 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 Net Absorption New Supply Vacancy Absorption, New Supply and Vacancy Rates Woodlands Class B Office Absorption, New Supply and Vacancy Rates Woodlands Class A Office 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% -150,000 -100,000 -50,000 0 50,000 100,000 150,000 200,000 250,000 Net Absorption New Supply Vacancy
  2. 2. Historical Land Sales Transactions - Woodlands Submarket Woodlands Submarket Map Current Land Listings By Parcel Size - Woodlands Submarket Colliers International Statistics Revenues: $1.5 Billion Countries: 61 Offices: 512 Professionals & Staff: 12,509 Brokers: 4,387 Square Feet Managed: 979 Million* Lease/Sale Transactions: 73,972 Total Transaction Value: $59.6 Billion (Based on 2010 results.) *The combination of Colliers International and FirstService results in 2.2 Billion under management (2nd largest in the world). www.colliers.com/houston/houston/houston Accelerating success. Lisa R. Bridges Director of Market Research Houston Direct +1 713 830 2125 Fax +1 713 830 2118 lisa.bridges@colliers.com Colliers International 1300 Post Oak Boulevard Suite 200 Houston, TX 77056 United States www.colliers.com 1488 2920 249 1314 242 Huffsmith-Kohrville WoodlandsParkway ResearchForest Needham Rd. Grogan’sMillRd. Spring Stuebner GoslingRd. Kuykendahl ToHoustonCBD 24 12 12 17 32 39 0 5 10 15 20 25 30 35 40 45 2007 2008 2009 2010 2011 2012 25 139 45 34 18 9 3 0 20 40 60 80 100 120 140 160 - 1 1 - 5 5 - 10 10 - 20 20-50 50 - 100 100 + Acres P. 2 | COLLIERS INTERNATIONAL RESEARCH & FORECAST REPORT | YE 2012 | THE WOODLANDS

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