The Woodlands Office Market Snapshot Q2 2015

1. The Woodlands Office Market
Research Snapshot
THE WOODLANDS | OFFICE
Q2 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
2920
249
1314
242
Huffsmith-Kohrville
WoodlandsParkway
ResearchForest
Needham Rd.
Grogan’sMillRd.
Spring Stuebner
GoslingRd.
Kuykendahl
ToHoustonCBD
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

2. 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 $35.60
B 70 4,426,517 442,448 10.0% 33,340 0.8% 475,788 10.7% 8.1% -115,935 762 $24.66
C 5 338,038 1,000 0.3% 0 0.0% 1,000 0.3% 0.3% 0 0 $19.80
Total 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
1,800,000
Net Absorption New Supply
-150,000
-100,000
-50,000
0
50,000
100,000
150,000
200,000
Net Absorption New Supply

3. 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.

4. 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.
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MARKET CONTACT:
Lisa Bridges
Director of Market Research | Houston
+1 713 830 2125
lisa.bridges@colliers.com
Colliers International | The Woodlands
Two Hughes Landing
1790 Hughes Landing Blvd.
The Woodlands, TX | USA
+1 713 830 4011