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. 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