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 performed exceptionally well in Q4

Research Snapshot

THE WOODLANDS | OFFICEQ4 2018

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) Q4-2018 Q3-2018 Q4-2018 Q3-2018 AVG ($/SF)

The Woodlands

A 53 12,582,872 1,305,137 10.4% 67,799 0.5% 1,372,936 10.9% 9.2% 425,222 53,366 $34.34B 69 4,493,945 426,556 9.5% 12,892 0.3% 439,448 9.8% 8.8% -43,066 52,503 $24.53C 5 131,696 3,150 2.4% 0 0.0% 3,150 2.4% 4.8% 3,108 19,098 $24.65Total 127 17,208,513 1,734,843 10.1% 80,691 0.5% 1,815,534 10.6% 9.2% 385,264 124,967 $31.91

INVENTORY DIRECT VACANCY SUBLEASE VACANCY VACANCY RATE (%) NET ABSORPTION (SF)

The Woodlands office submarket performed exceptionally well over the quarter, posting 385,264 SF of positive net absorption in Q4 2018. The average vacancy rate increased from 9.2% in Q3 2018 to 10.6%.

The Woodlands office market finished 2018 with strong absorption as HP occupied 378,000 SF in two buildings in Springwoods Village. The Q4 absorption total is the highest recorded in the submarket since Q2 2015.

Leasing activity continued to be robust as The Howard Hughes Corporation completed over 141,000 SF of leases at Lake Front North after acquiring the former CB&I buildings during Q3 2018 and re-naming the project. Also, Havenwood Office Park reported over 61,000 SF of leasing in Q4 2018.

Lisa Bridges Director of Market Research | Houston

HOUSTONTEXAS THE WOODLANDS

2 The Woodlands Research Snapshot | Q4 2018 | 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.

0.0

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$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

400,000

Available Sublease SpaceThe Woodlands

Class A Class B

Available Sublease SpaceQ4 2018

Class A: 91,921 SF or 0.7% Class B: 66,503 SF or 1.5%

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$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 2125lisa.bridges@colliers.com

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 © 2019 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

-200,0000

200,000400,000600,000800,000

1,000,0001,200,0001,400,0001,600,0001,800,0002,000,0002,200,0002,400,0002,600,000

Net Absorption New Supply

-150,000

-100,000

-50,000

0

50,000

100,000

150,000

200,000

Net Absorption New Supply

4 The Woodlands Research Snapshot | Q4 2018 | Office | Colliers International4

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$116BTRANSACTION VALUE

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15,400PROFESSIONALS

340ACCREDITED MEMBERS

69COUNTRIES

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