Q2 2016 The Woodlands Office Market Snapshot
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The Woodlands office market not isolated from Houston’s current market conditions Research Snapshot THE WOODLANDS | OFFICE Q2 2016 Statistical Summary 1488 2920 249 1314 242 H u f fsmith-Ko h rville Woodlands Parkway Research Forest Needham Rd. Grogan’s Mill Rd. Spring Stuebner Gosling Rd. Kuykendahl To Houston CBD WOODLANDS SUBMARKET MAP VACANCY RENTAL RATE Class # of Bldgs. Total (SF) (SF) Rate (%) (SF) Rate (%) Total (SF) Q2 2016 Q1 2016 Q2 2016 Q1-2016 AVG ($/SF) The Woodlands A 38 10,724,657 1,129,766 10.5% 105,428 1.0% 1,235,194 11.5% 9.6% 11,609 -62,628 $36.88 B 70 4,399,318 413,276 9.4% 80,501 1.8% 493,777 11.2% 10.5% -29,786 47,964 $24.13 C 4 308,161 25,119 8.2% 0 0.0% 25,119 8.2% 8.2% 0 -24,119 $19.80 Total 112 15,432,136 1,568,161 10.2% 185,929 1.2% 1,754,090 11.4% 9.8% -18,177 -38,783 $30.23 INVENTORY DIRECT VACANCY SUBLEASE VACANCY VACANCY RATE NET ABSORPTION The Q2 2016 office market in The Woodland’s continues to struggle due to the low price of oil. The Woodlands is not isolated from Houston’s current market conditions, but does fare better than most of Houston’s other office submarkets. The Woodlands’ Q2 2016 office market vacancy rate increased 160 basis points over the quarter primarily due to the completion of Havenwood Office Park, a 240,480-SF four-story Class A office building which delivered 100% vacant in Q2. Although there are over 1.7M square feet of vacant office space in The Woodlands submarket, only five buildings can accommodate a large tenant looking for 100,000 square feet or greater, making up a mere 3.6 percent of Houston’s city-wide buildings that can accomodate a tenant of that size. Lisa Bridges Director of Market Research | Houston Market Indicators Class A Class B VACANCY NET ABSORPTION CONSTRUCTION RENTAL RATE NEW SUPPLY The Woodlands “In e News” Newfield Exploration recently announced plans to relocate up to 15 percent of its U.S. workforce to The Woodlands from Oklahoma. Newfield currently has 450 employees in The Woodlands.
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Transcript of Q2 2016 The Woodlands Office Market Snapshot
The Woodlands office market not isolated from Houston’s current market conditions
Research Snapshot
THE WOODLANDS | OFFICEQ2 2016
Statistical Summary
1488
2920249
1314
242
Huffsmith-Kohrville
WoodlandsParkway
ResearchForest
Needham Rd.
Grogan’s Mill Rd.
Spring Stuebner
Gosling Rd.Kuykendahl
To Houston CBD
WOODLANDS SUBMARKET MAP
VACANCYRENTAL
RATEClass # of Bldgs. Total (SF) (SF) Rate (%) (SF) Rate (%) Total (SF) Q2 2016 Q1 2016 Q2 2016 Q1-2016 AVG ($/SF)
The Woodlands
A 38 10,724,657 1,129,766 10.5% 105,428 1.0% 1,235,194 11.5% 9.6% 11,609 -62,628 $36.88B 70 4,399,318 413,276 9.4% 80,501 1.8% 493,777 11.2% 10.5% -29,786 47,964 $24.13C 4 308,161 25,119 8.2% 0 0.0% 25,119 8.2% 8.2% 0 -24,119 $19.80Total 112 15,432,136 1,568,161 10.2% 185,929 1.2% 1,754,090 11.4% 9.8% -18,177 -38,783 $30.23
INVENTORY DIRECT VACANCY SUBLEASE VACANCY VACANCY RATE NET ABSORPTION
The Q2 2016 office market in The Woodland’s continues to struggle due to the low price of oil. The Woodlands is not isolated from Houston’s current market conditions, but does fare better than most of Houston’s other office submarkets. The Woodlands’ Q2 2016 office market vacancy rate increased 160 basis points over the quarter primarily due to the completion of Havenwood Office Park, a 240,480-SF four-story Class A office building which delivered 100% vacant in Q2. Although there are over 1.7M square feet of vacant office space in The Woodlands submarket, only five buildings can accommodate a large tenant looking for 100,000 square feet or greater, making up a mere 3.6 percent of Houston’s city-wide buildings that can accomodate a tenant of that size.
Lisa Bridges Director of Market Research | Houston
Market Indicators Class A Class B
VACANCY
NET ABSORPTION
CONSTRUCTION
RENTAL RATE
NEW SUPPLY
The Woodlands
“In The News”
Newfield Exploration recently announced plans to relocate up to 15 percent of its U.S. workforce to The Woodlands from Oklahoma. Newfield currently has 450 employees in The Woodlands.
2 The Woodlands Research Snapshot | Q2 2016 | 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.
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Class B Rental Rate and Vacancy Percentage The Woodlands, TX
Class B Rents Class B Vacancy
*Vacancy percentage includes direct and sublease space.
0
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100,000
150,000
200,000
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Available Sublease Space - The Woodlands
Class A Class B
Available Sublease Space Q2 2016 Class A: 312,961 SF or 2.9% Class B: 155,842 SF or 3.5%
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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 [email protected]
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 © 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 | The Woodlands1790 Hughes Landing Blvd., Suite 250The Woodlands, TX 77380+1 713 830 4011colliers.com/thewoodlands
Absorption and New SupplyWoodlands Class A Office
Woodlands Class B Office
-200,0000
200,000400,000600,000800,000
1,000,0001,200,0001,400,0001,600,0001,800,0002,000,000
Net Absorption New Supply
-150,000
-100,000
-50,000
0
50,000
100,000
150,000
200,000Net Absorption New Supply
