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Q1 2014 The Woodlands Office Research & Forecast Report

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The Woodlands submarket, one of Houston’s top suburban office submarkets,
experienced a flurry of activity in 2013 and that momentum continues into the new year.
The Woodlands office submarket contributed 33% or 762,000 SF of Houston’s Q1 2014
total suburban positive net absorption, which is impressive since the submarket has
only a 5.8% share of Houston’s suburban office inventory. Vacancy in the submarket
decreased 130 basis points to 5.9% from 7.2% in Q4 2013.
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’s 3.5
million SF north Houston campus just south of The Woodlands is nearing completion
and has fueled development of retail, single-family, multi-family, hotel, and other office
projects in the area. Office development is progressing rapidly at Hughes Landing on
Lake Woodlands. One and Two Hughes Landing are completed and Three Hughes
Landing is projected to break ground in the near future. Further, Anadarko’s second
tower in The Woodlands delivered at the end of the Q4 2013, and the company has
enough land for another 600,000 SF tower if the company continues to expand.
The Houston metropolitan area added 91,300 jobs between January 2013 and January
2014, an annual increase of 3.4% over the prior year’s job growth. Local economists
have forecasted 2014 job growth to remain strong, adding between 68,000 and 72,000
jobs. Houston’s unemployment fell to 5.6% from 6.9% one year ago. Houston area
home sales increased 8.35% between February 2013 and February 2014 and the
average price of a single-family home rose 12.5% over the year.
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.
Release Date04/30/2014 - 07:00


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