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SUB MARKET REPORT THE WOODLANDSHOUSTON MARKET 2019
USA +1 (832) 482-9367 · MEX +52 (55) 5351-0900 · 25219 Kuykendahl Rd, Ste 240, Tomball TX, 77375
Search 45,000+ homes for sale on Tamborrel.com · luis@tamborrel.com
COMMERCIAL
OFFICE SUBMARKET REPORT
Submarket Key Statistics 2
Leasing 3
Rent 7
Construction 9
Sales 13
Sales Past 12 Months 14
Supply & Demand Trends 16
Rent & Vacancy 18
Sale Trends 20
The Woodlands Office
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Luis Tamborrel, Tamborrel Properties 281-813-6027
OverviewThe Woodlands Office
1 M 628 K 10.3% 0.4%12 Mo Deliveries in SF 12 Mo Net Absorption in SF Vacancy Rate 12 Mo Rent Growth
The Woodlands continues to be seen as one of the mostattractive office nodes in the Houston metro. It has grownin importance to be in the conversation among theHouston area’s premier office clusters such as the CBD,Galleria/Uptown, the Energy Corridor, and GreenwayPlaza in terms of lofty asking rents, strong absorption,and significant construction activity.
The recent opening of the Grand Parkway and newdevelopment in Springwoods Village—which includedlarge tenant moves by ExxonMobil, SouthwesternEnergy, HP Inc., and ABS—has contributed to the area’sgrowth story.
The Woodlands continues to transform into a largely self-sustaining exurban core area, and long-term, the area ispoised to remain one of the strongest office submarketsin the metro, as it offers one of the few trulylive/work/play environments outside of the 610 Loop.
The submarket today is one of the best-performingoffice submarkets in the metropolitan area, with avacancy rate of 10.3% outperforming both its peer setand the metro average, and with significant preleasingmomentum to boot.
Landlords in The Woodlands breathed a sigh of relief in19Q3, as Occidental announced plans to keepAnadarko's campus in The Woodlands post-merger. It isstill unclear how much of that space will be used, as themerger is likely to lead to some employmentreduncancies. However, this was welcome news, asOccidental had previously purchased ConocoPhillips'Woodcreek campus in 2018 with plans to move.Occidental announced that it will actually sell thatcampus and remain at Greenway Plaza and atAnadarko's campus in The Woodlands.
KEY INDICATORS
Market RentVacancy RateRBACurrent Quarter Availability RateNet Absorption
SFDeliveries SF
UnderConstruction
$35.368.3%13,999,4904 & 5 Star 11.8% (225,870) 48,840 180,000
$28.5414.3%7,218,7743 Star 16.7% (121,630) 8,000 140,707
$23.009.7%1,910,1741 & 2 Star 13.0% (6,486) 3,584 7,168
$32.2510.3%23,128,438Submarket 13.5% (353,986) 60,424 327,875
ForecastAverage
HistoricalAverage
12 MonthAnnual Trends Peak When Trough When
9.4%9.1%1.4%Vacancy Change (YOY) 16.6% 2004 Q1 1.5% 1999 Q1
374,938810,518628 KNet Absorption SF 5,942,916 2015 Q2 (66,765) 2010 Q3
514,448910,2711 MDeliveries SF 5,770,933 2015 Q2 48,380 2010 Q3
1.2%1.9%0.4%Rent Growth 13.9% 2008 Q1 -7.5% 2009 Q4
N/A$56.9M$229 MSales Volume $229.1M 2019 Q2 $374.0K 2002 Q3
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LeasingThe Woodlands Office
The Woodlands boasted a vacancy rate of 10.3% as of19Q3, which was the lowest out of the five largestsubmarkets in the Houston metro by a wide margin.Having absorbed 630,000 SF over the past year as of19Q2, The Woodlands led all Houston-area submarketsin terms of demand by a similarly wide margin. Thesubmarket's largest move-in so far this year occurred inJanuary 2019, when the American Bureau of Shipping(ABS) began to occupy the entire 326,800 SF ofCityPlace 2 in Springwoods Village. In December 2018,HP Inc. moved into 233,500 SF in HP Building 1 and144,900 SF in HP Building 2, also in SpringwoodsVillage.
Vacancy in The Woodlands peaked at 12% in 17Q1before compressing to its current level. Demand in TheWoodlands remains robust and has benefited from theflight-to-quality trend experienced elsewhere inHouston's office market. The area is a prime destinationfor new build-to-suit corporate campuses, wherecompanies can build highly amenitized complexes at afraction of the cost to a similar development in the urbancore. And with the growing Woodlands Waterway mixed-use town center, live/work/play amenities are plentifulnearby. Soon, the CityPlace mixed-use development will
add to the list of mixed-use town centers in the area. Atfull build-out, Springwoods Village could grow toencompass over 8 million SF of office space in additionto 5,000 housing units, 500 hotel rooms, and more than1 million SF of retail.
The largest lease signed so far in 2019 was for HR andbenefit administration company Alight Solutions' 180,000SF at 8770 New Trails Dr., a 4 Star office building beingdeveloped by The Howard Hughes Corporation thatshould deliver in May 2020. Both of the largest leasessigned in 2018 were for energy company lease renewals:Huntsman’s 250,000 SF at 10003 Woodloch Forest Dr.for 12 years and ARC Holdings, LP’s 190,000 SF at4000 Technology Forest Dr. for a one-year extension.ExxonMobil announced that it would lease 26,000 SF,and Entergy announced that it would lease 54,000 SF atLake Front North, a complex recently acquired fromChicago Bridge & Iron by The Howard HughesCorporation.
The submarket's vacancy rate should generally remainbelow 9% over the next five years, thanks to a dearth ofnew supply (owing to its master-planned communities)and steady demand.
NET ABSORPTION, NET DELIVERIES & VACANCY
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LeasingThe Woodlands Office
VACANCY RATE
AVAILABILITY RATE
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LeasingThe Woodlands Office
4 & 5 STAR MOST ACTIVE BUILDINGS IN SUBMARKET - PAST 12 MONTHS
Property Name/Address Rating RBA Deals SF Vacancy (QTD) Net Absorption SF (QTD)
65,997480 Wildwood Forest Dr
Wildwood Corporate Centre II201,933 7 22.3% 46,683
31,8051575 Sawdust Rd
Sierra Pines II152,999 5 25.5% 15,141
137,63425700 Interstate 45
Havenwood Office Park240,470 7 35.3% 8,508
48,2341780 Hughes Landing Blvd
Three Hughes Landing320,815 10 19.0% 5,068
28,3842107 Research Forest Dr
Lake Front North152,827 2 7.3% 2,281
10,9858665 New Trails Dr
Bldg IV63,209 1 49.4% 1,030
4,30821 Waterway Ave
21 Waterway102,816 1 10.1% 0
4,5441790 Hughes Landing Blvd
Two Hughes Landing197,714 1 2.2% 0
4,6002829 Technology Forest Blvd
Black Forest Technology Park81,865 1 0% 0
10,1919320 Lakeside Blvd
Building 265,988 1 0% 0
9,4261700 City Plaza Dr
CityPlace 1149,500 1 82.0% 0
3,8006922 W Rayford Rd
13,384 1 48.9% 0
3,5007107 FM 2920
11,500 1 0% 0
4,0539180 Pinecroft Dr
The Woodlands Medical Plaza 4171,996 1 41.3% 0
56,8341725 Hughes Landing Blvd
Hughes Landing332,000 2 3.6% 0
2,6608777 W Rayford Rd
16,000 6 0% 0
9,5331800 Hughes Landing Blvd
One Hughes Landing197,719 3 6.5% 0
5,00017002 Glen Eagle Dr N
10,000 1 50.0% (2,500)
13,34510077 Grogans Mill Rd
Parkwood I100,240 3 19.7% (9,353)
19,6752445 Technology Forest Blvd
Building 4285,665 2 4.8% (9,464)
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LeasingThe Woodlands Office
3 STAR MOST ACTIVE BUILDINGS IN SUBMARKET - PAST 12 MONTHS
Property Name/Address Rating RBA Deals SF Vacancy (QTD) Net Absorption SF (QTD)
16,4221450 Lake Robbins Dr
Town Center I139,845 4 27.4% 17,809
24,65017350 St. Lukes Way
Medical Arts Center II96,400 4 7.1% 3,353
7,9902202 Timberloch Pl
50,211 3 13.7% 2,023
5,11121021 Springbrook Plaza Dr
Springbrook Plaza Office Bldg25,835 4 5.7% 1,107
6,00518 Augusta Pines Dr
Augusta Pines Golf Club100,000 8 1.5% 425
11,78319221 Interstate 45 S
Southwood Tower78,626 7 9.6% 0
11,009920 Medical Plaza Dr
Memorial Woodlands Profess…95,322 7 0% 0
8,1882201 Timberloch Pl
51,947 3 20.3% 0
4,94533300 Egypt Ln
Magnolia Crossing - Bldg B7,394 4 20.2% 0
64325329 Budde Rd
Building 8- Office Suite Soluti…4,900 4 6.0% 0
2,8658111 Ashlane Way
14,200 7 3.8% (342)
2,756431 Nursery Rd
Pines Crossing - Bldg A6,851 4 10.7% (731)
1,65026310 Oak Ridge Dr
18,000 5 15.4% (771)
5,2002204 Timberloch Pl
50,038 3 14.5% (1,202)
11,561719 Sawdust Rd
Woodlandgate Plaza I56,675 11 33.4% (2,160)
11,56317191 St. Lukes Way
Sadler Clinic40,382 3 6.3% (2,540)
17,31610210 Grogans Mill Rd
10210 Grogans Mill Road20,000 37 38.6% (5,021)
9,1822002 Timberloch Pl
107,835 4 17.4% (5,491)
13,07810200 Grogans Mill Rd
Ten Two-Hundred80,180 8 20.4% (6,156)
9,6069400 Grogans Mill Rd
Town Center Plaza41,166 4 44.1% (10,553)
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RentThe Woodlands Office
Asking rents in The Woodlands are about $32.00/SF,about 15% higher than the metro average and the third-highest in the region after the CBD and Galleria/Uptownsubmarkets as of 19Q3. Market-rate rental growth wasflat as of 19Q2. The submarket has not managed toescape the large amount of competitive available 4 & 5Star space in other submarkets, particularly in WestHouston and inside the 610 Loop. Rents here fell from
their 14Q4 peak, when oil prices began to fall, and seemto have stabilized north of $35/SF for 4 & 5 Star andnorth of $31/SF overall. Looking forward, The Woodlandsshould benefit from a compressing vacancy rate acrossthe Houston metro as the outlooks for the energyindustry and the local office market begin to turn morebroadly positive.
MARKET RENT GROWTH (YOY)
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RentThe Woodlands Office
MARKET RENT PER SQUARE FOOT
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ConstructionThe Woodlands Office
There is currently 330,000 SF under construction in TheWoodlands. This includes the 180,000-SF AlightSolutions building at 8770 New Trails Dr., which is beingdeveloped by The Howard Hughes Corporation. It alsoincludes Warmack Investments' 135,000-SF Building 9at Research Forest Lakeside.
While the construction cycle has wound downsignificantly in the Houston metro, The Woodlands stillranks in the top five submarkets for square footageunder construction, even though this figure is downsignificantly from the more than 6 million SF under
construction in 2013, which included the ExxonMobilcampus. Few large projects are expected to start in thenear term as the Houston metro plays catch-up to itsrecent construction cycle and attempts to absorb theincrease in deliveries.
Of the 11 million SF that delivered this cycle, 10 millionSF was 4 & 5 Star (87%). The Woodlands ranks first fortrailing 12-month deliveries in the metro, as HP Inc.'sBuildings 1 and 2 and CityPlace 2, with anchor tenantABS, all delivered, totaling over 800,000 SF.
DELIVERIES & DEMOLITIONS
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ConstructionThe Woodlands Office
97,232 1,038,888 324,291 1,223,856All-Time Annual Avg. SF Delivered SF Past 4 Qtrs Delivered SF Next 4 Qtrs Proposed SF Next 4 Qtrs
PAST 4 QUARTERS DELIVERIES, UNDER CONSTRUCTION, & PROPOSED
PAST & FUTURE DELIVERIES IN SQUARE FEET
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ConstructionThe Woodlands Office
RECENT DELIVERIES
Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner
Jan-2019350 Nursery Rd
Building 33,584 1 Sep-2019
-
-1
Oct-201825111 Budde Rd
8,000 1 Jul-2019-
A C Larsen2
May-20181401 Lake Plaza Dr
City Place48,840 2 Jul-2019
Patrinely Group, LLC
Patrinely Group, LLC3
Jun-20181700 City Plaza Dr
CityPlace 1149,500 5 Jun-2019
Patrinely Group, LLC
Patrinely Group, LLC4
Sep-2017121 Vision Park Blvd
Vision Park Medical58,000 3 Apr-2019
Everson Developments, LLC
Avanti Senior Living5
Jun-2018350 Nursery Rd
Building 24,182 1 Apr-2019
-
Houston International Realty6
Jun-2018350 Nursery Rd
Building 14,200 1 Apr-2019
-
Matthew Grafton7
Aug-20171350 Rayford Park Rd
Bldg 112,000 1 Feb-2019
-
Jose M Guerrero8
Sep-20171340 Rayford Park Rd
Bldg 212,000 2 Feb-2019
-
Jose M Guerrero9
Sep-20171330 Rayford Park Rd
Bldg 312,000 1 Feb-2019
-
Jose M Guerrero10
Jan-2018250 Ed English Dr
Bldg 5 Unit B6,540 1 Jan-2019
-
Ghana Khadka11
Jun-201817002 Glen Eagle Dr N
10,000 2 Jan-2019-
Habitat For Humanity Montgomer…12
Apr-201825511 Budde Rd
Bldg 364,840 2 Dec-2018
-
-13
Feb-20171701 City Plaza Dr
CityPlace 2326,800 10 Nov-2018
Barker Patrinely Group, Inc
Patrinely Group, LLC14
Jul-201710300 Energy Dr
HP Building 1233,516 4 Nov-2018
Patrinely Group, LLC
Northridge Capital15
Jul-201710400 Energy Dr
HP Building 2144,886 5 Nov-2018
Patrinely Group, LLC
Northridge Capital16
Jan-201826406 Oak Ridge Dr
8,000 1 Aug-2018-
Houston International Realty17
Oct-201761 Carlton Woods Dr
Carlton Woods & Sterlin…11,500 2 Jul-2018
-
Steve S Polakoff18
UNDER CONSTRUCTION
Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner
Jun-20198770 New Trails Dr
Alight Solutions180,000 4 Feb-2020
The Howard Hughes Corporation
The Howard Hughes Corporation1
Aug-20199709 Lakeside Blvd
Building 9134,938 6 Aug-2020
DBR Engineering Consultants
Warmack Investments2
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ConstructionThe Woodlands Office
UNDER CONSTRUCTION
Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner
Jan-201926211 Kuykendahl Rd
Ipanema Business Park5,000 1 Dec-2019
-
-3
Jul-2019350 Nursery Rd
Building 43,584 1 Jan-2020
-
-4
Jun-2019350 Nursery Rd
Building 53,584 1 Dec-2020
-
-5
Apr-201918708 Centro Main St
Centro769 1 Oct-2019
-
Palmetto Homes6
PROPOSED
Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner
Jan-202023680 Interstate 45
Spring Crossing I385,500 14 Jun-2020
Skanska USA Commercial Devel…
SCD Acquisitions LLC1
Jan-202023680 Interstate 45
Spring Crossing II302,900 12 Jun-2020
Skanska USA Commercial Devel…
SCD Acquisitions LLC2
Nov-2019815 Northgate Crossing Blvd
Building 2144,000 6 Jan-2020
Halberdier Real Estate LLC
Feliciano Corporation3
Sep-201917120 St Lukes Way
120,400 4 Jul-2020-
-4
Sep-201918386 I-45 Hwy S
65,000 4 Jan-2020-
-5
Sep-201917835 Interstate 45 S
Metro Medical36,000 3 Mar-2020
-
ReMax Evolve6
Jan-2020Creekside Park
Creekside Park - Phase I33,600 2 May-2020
-
-7
Jan-2020Creekside Park
Creekside Park - Phase II33,600 2 May-2020
-
-8
Sep-20191875 Country Ln
31,695 3 Sep-2020-
Amazing Spaces9
Sep-201925806 Budde Rd
Building 121,000 4 Dec-2019
-
A & J Smalley Lp10
Sep-201925806 Budde Rd
Building 221,000 4 Dec-2019
-
A & J Smalley Lp11
Sep-201922565 N I-45 Fwy
20,000 2 Mar-2020-
Sandeep Patel12
Sep-2019250 Ed English Dr
5,036 - Feb-2020-
-13
Sep-2019FM 2920
Build-to-Suit Office Build…4,125 1 Dec-2019
-
Law Office of John K. Tyler14
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SalesThe Woodlands Office
Investment in The Woodlands never seems to amount toa large percentage of inventory, as large energycorporate owner-occupiers take up a lot of the squarefootage in the submarket, and transaction activityremained muted in 2018 as well.
By far the largest sale in 2019 involved the two-propertyportfolio sale of HP, Inc. Buildings 1 and 2 inSpringwoods Village for an undisclosed price. The twonewly constructed, 5 Star, LEED-certified office buildingstotal approximately 380,000 SF. They were purchased byWashington, D.C.-based Northridge Capital from aparternship between CDC Development, Patrinely Group,and USAA. Prior to the sale, tenant HP Inc. signed a 12-year lease and will occupy 100% of both buildings,otherwise known as HP Plaza. The buildings are locatedin the CityPlace mixed-use development, at 10300 and10400 Energy Dr. in Springwoods Village, a 2,000-acremaster-planned community north of Houston. Thecompany moved its 2,400 Houston employees to the
new campus following the flooding and damagesustained in 2016 and 2017 to its prior campus nearCypress Creek.
The most notable sale in 2018 occurred in September,when The Howard Hughes Corporation acquired twooffice buildings located at 2103 Research Forest Dr. andan adjacent 3.46-acre vacant land parcel fromMcDermott International, Inc. for $53 million. Theproperty is being repositioned as Lake Front North inHughes Landing. The property was originally owned byChicago Bridge & Iron Co. (CB&I), which merged withMcDermott International earlier this year, leavingMcDermott International with ownership of the property.Both properties were considered at 0% occupancy at thetime of sale. The buyer acquired the buildings belowreplacement cost and intends to re-tenant the buildingsas soon as possible. McDermott International is also thelandlord of the surrounding properties.
SALES VOLUME & MARKET SALE PRICE PER SF
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Sales Past 12 MonthsThe Woodlands Office
46 6.3% $343 29.1%Sale Comparables Avg. Cap Rate Avg. Price/SF Avg. Vacancy At Sale
SALE COMPARABLE LOCATIONS
SALE COMPARABLES SUMMARY STATISTICS
Sales Attributes Low Average Median High
Sale Price $252,000 $22,834,290 $795,000 $109,476,934
Price Per SF $71 $343 $211 $469
Cap Rate 6.0% 6.3% 6.0% 6.9%
Time Since Sale in Months 0.1 5.4 5.6 12.0
Property Attributes Low Average Median High
Building SF 2,044 49,492 7,020 257,500
Stories 1 2 1 10
Typical Floor SF 1,113 20,132 6,540 189,974
Vacancy Rate At Sale 0% 29.1% 0% 100%
Year Built 1968 1997 2003 2019
Star Rating 2.8
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Sales Past 12 MonthsThe Woodlands Office
Property Name - Address Rating Yr Built Bldg SF Vacancy Price Price/SF
Property
Sale Date
Sale
Cap Rate
RECENT SIGNIFICANT SALES
-1 HP Building 12018 233,516 0% $109,476,934 $469
10300 Energy Dr4/4/2019 6.0%
-2 HP Building 22018 144,886 0% $63,523,066 $438
10400 Energy Dr4/4/2019 6.0%
-3 Lake Front North2003 105,864 100% $30,215,552 $285
2103 Research Forest Dr9/7/2018 -
-4 Lake Front North2014 152,827 63.1% $21,997,344 $144
2107 Research Forest Dr9/7/2018 -
-5 Bldg 72018 12,000 0% $850,000 $71
1311 Rayford Rd1/7/2019 -
-6 214 Nursery Rd1968 3,966 0% $740,000 $1874/10/2019 -
-7 26023 Oak Ridge Dr1971 2,044 0% $535,000 $2627/20/2019 -
-8 1625 Rayford Rd1998 5,200 0% $453,000 $873/18/2019 -
-9 2219 Sawdust Rd2013 1,250 18.0% $305,000 $24412/3/2018 -
-10 25215 Oakhurst Dr1968 2,200 0% $300,000 $13610/22/2018 -
-11 Building 12014 1,200 0% $282,500 $235
2219 Sawdust Rd5/1/2019 -
-12 25410 Oakhurst Dr1970 2,258 0% $252,000 $1124/23/2019 -
-13 Building 72014 1,226 0% - -
150 Pine Forest Dr4/9/2019 -
-14 Southwestern Energy HQ2014 257,500 52.8% - -
10000 Energy Dr7/15/2019 -
-15 Bldg 52006 1,250 0% - -
7 Grogans Park Dr6/7/2019 -
-16 25511 Oakhurst Dr1970 2,226 100% - -5/31/2019 -
-17 22321 Gosling Rd2014 3,408 0% - -5/31/2019 -
-18 Taylor Building2008 4,500 66.7% - -
25511 Budde Rd5/23/2019 -
-19 26113 Oak Ridge Dr- 8,929 0% - -5/10/2019 -
-20 Building 132014 1,225 0% - -
2219 Sawdust Rd9/4/2019 -
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Supply & Demand TrendsThe Woodlands Office
OVERALL SUPPLY & DEMAND
Net AbsorptionInventory
% of Inv Construction RatioSF SF Growth % Growth SFYear
2023 537,814 2.2% 1.9%478,962 1.124,856,547
2022 485,380 2.0% 1.3%321,310 1.524,318,733
2021 355,786 1.5% 1.8%417,410 0.923,833,353
2020 366,853 1.6% 1.5%350,695 1.023,477,567
2019 311,122 1.4% 1.7%403,747 0.823,110,714
YTD 328,846 1.4% 0.9%219,473 1.523,128,438
2018 802,268 3.6% 3.0%692,704 1.222,799,592
2017 (47,642) -0.2% 0.9%202,938 -21,997,324
2016 690,645 3.2% 0.8%186,624 3.722,044,966
2015 4,719,512 28.4% 18.7%3,992,370 1.221,354,321
2014 3,621,898 27.8% 21.8%3,622,817 1.016,634,809
2013 1,018,463 8.5% 5.5%712,795 1.413,012,911
2012 201,853 1.7% 4.9%590,154 0.311,994,448
2011 249,509 2.2% 5.9%691,126 0.411,792,595
2010 125,848 1.1% 0.2%28,535 4.411,543,086
2009 404,910 3.7% 0.9%105,739 3.811,417,238
2008 1,365,432 14.2% 7.7%846,426 1.611,012,328
2007 189,284 2.0% 3.1%303,350 0.69,646,896
4 & 5 STAR SUPPLY & DEMAND
Net AbsorptionInventory
% of Inv Construction RatioSF SF Growth % Growth SFYear
2023 613,696 4.0% 3.4%535,063 1.115,897,991
2022 560,476 3.8% 2.7%405,352 1.415,284,295
2021 426,451 3.0% 3.0%439,332 1.014,723,819
2020 297,878 2.1% 1.8%260,375 1.114,297,368
2019 266,340 1.9% 2.6%361,481 0.713,999,490
YTD 266,340 1.9% 2.3%319,862 0.813,999,490
2018 713,028 5.5% 4.9%679,434 1.013,733,150
2017 (60,953) -0.5% 2.3%294,529 -13,020,122
2016 564,905 4.5% 1.2%160,890 3.513,081,075
2015 4,580,001 57.7% 31.9%3,994,493 1.112,516,170
2014 3,284,084 70.6% 42.6%3,377,939 1.07,936,169
2013 781,096 20.2% 9.9%462,340 1.74,652,085
2012 0 0% 1.0%37,425 03,870,989
2011 65,988 1.7% 5.6%215,430 0.33,870,989
2010 0 0% 1.3%47,914 03,805,001
2009 0 0% 2.2%82,926 03,805,001
2008 908,893 31.4% 16.1%611,630 1.53,805,001
2007 0 0% -0.9%(26,282) -2,896,108
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Supply & Demand TrendsThe Woodlands Office
3 STAR SUPPLY & DEMAND
Net AbsorptionInventory
% of Inv Construction RatioSF SF Growth % Growth SFYear
2023 172 0% 0.1%7,087 07,360,204
2022 196 0% -0.2%(15,120) -7,360,032
2021 226 0% 0.6%41,508 07,359,836
2020 140,067 1.9% 1.9%141,672 1.07,359,610
2019 55,491 0.8% 1.1%82,127 0.77,219,543
YTD 54,722 0.8% -1.1%(76,024) -7,218,774
2018 79,240 1.1% 0.3%18,189 4.47,164,052
2017 13,311 0.2% -1.3%(90,388) -7,084,812
2016 119,940 1.7% 0.6%45,749 2.67,071,501
2015 126,611 1.9% -0.4%(30,360) -6,951,561
2014 333,028 5.1% 3.3%226,232 1.56,824,950
2013 237,367 3.8% 3.7%237,386 1.06,491,922
2012 188,311 3.1% 7.2%451,995 0.46,254,555
2011 156,521 2.6% 6.3%381,183 0.46,066,244
2010 111,948 1.9% 1.6%97,483 1.15,909,723
2009 376,930 7.0% 0.9%52,545 7.25,797,775
2008 443,577 8.9% 4.0%216,013 2.15,420,845
2007 145,056 3.0% 5.1%254,134 0.64,977,268
1 & 2 STAR SUPPLY & DEMAND
Net AbsorptionInventory
% of Inv Construction RatioSF SF Growth % Growth SFYear
2023 (76,054) -4.5% -4.0%(63,188) -1,598,352
2022 (75,292) -4.3% -4.1%(68,922) -1,674,406
2021 (70,891) -3.9% -3.6%(63,430) -1,749,698
2020 (71,092) -3.8% -2.8%(51,352) -1,820,589
2019 (10,709) -0.6% -2.1%(39,861) -1,891,681
YTD 7,784 0.4% -1.3%(24,365) -1,910,174
2018 10,000 0.5% -0.3%(4,919) -1,902,390
2017 0 0% -0.1%(1,203) -1,892,390
2016 5,800 0.3% -1.1%(20,015) -1,892,390
2015 12,900 0.7% 1.5%28,237 0.51,886,590
2014 4,786 0.3% 1.0%18,646 0.31,873,690
2013 0 0% 0.7%13,069 01,868,904
2012 13,542 0.7% 5.4%100,734 0.11,868,904
2011 27,000 1.5% 5.1%94,513 0.31,855,362
2010 13,900 0.8% -6.4%(116,862) -1,828,362
2009 27,980 1.6% -1.6%(29,732) -1,814,462
2008 12,962 0.7% 1.1%18,783 0.71,786,482
2007 44,228 2.6% 4.3%75,498 0.61,773,520
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Luis Tamborrel, Tamborrel Properties 281-813-6027 Page 17
Rent & VacancyThe Woodlands Office
OVERALL RENT & VACANCY
Market Rent
Per SF Index % Growth Vs Hist PeakYear
Vacancy
SF Percent Ppts Chg
2023 111 1.5% -2.9%$34.20 2,354,785 9.5% 0%
2022 109 1.5% -4.3%$33.70 2,295,633 9.4% 0.5%
2021 108 1.5% -5.7%$33.21 2,131,282 8.9% -0.4%
2020 106 1.2% -7.1%$32.72 2,192,625 9.3% -0.1%
2019 105 0.5% -8.2%$32.35 2,176,129 9.4% -0.5%
YTD 105 0.1% -8.5%$32.25 2,377,018 10.3% 0.3%
2018 104 0.6% -8.6%$32.21 2,267,645 9.9% 0.1%
2017 104 -0.5% -9.1%$32.02 2,158,081 9.8% -1.1%
2016 104 -4.4% -8.7%$32.18 2,408,661 10.9% 2.0%
2015 109 -4.5% -4.5%$33.64 1,904,640 8.9% 1.8%
2014 114 5.8% 0%$35.23 1,177,498 7.1% 0.2%
2013 108 7.2% -5.5%$33.31 889,808 6.8% 2.0%
2012 101 10.9% -11.8%$31.08 584,140 4.9% -3.4%
2011 91 4.7% -20.5%$28.01 972,441 8.2% -4.0%
2010 87 -6.2% -24.0%$26.76 1,414,058 12.3% 0.7%
2009 92 -7.5% -19.0%$28.52 1,316,745 11.5% 2.3%
2008 100 7.0% -12.4%$30.85 1,017,574 9.2% 4.1%
2007 93 13.5% -18.2%$28.82 498,568 5.2% -1.3%
4 & 5 STAR RENT & VACANCY
Market Rent
Per SF Index % Growth Vs Hist PeakYear
Vacancy
SF Percent Ppts Chg
2023 104 1.5% -6.3%$37.68 1,372,518 8.6% 0.2%
2022 103 1.5% -7.7%$37.12 1,294,026 8.5% 0.7%
2021 101 1.6% -9.1%$36.56 1,139,042 7.7% -0.3%
2020 99 1.3% -10.5%$35.98 1,152,076 8.1% 0.1%
2019 98 1.0% -11.7%$35.51 1,114,678 8.0% -0.8%
YTD 98 0.5% -12.1%$35.36 1,156,229 8.3% -0.5%
2018 97 0% -12.6%$35.17 1,209,751 8.8% -0.2%
2017 97 -1.7% -12.6%$35.16 1,176,157 9.0% -2.7%
2016 99 -5.7% -11.1%$35.76 1,531,639 11.7% 2.7%
2015 105 -5.8% -5.8%$37.91 1,127,624 9.0% 2.2%
2014 111 5.4% 0%$40.22 542,116 6.8% -0.6%
2013 105 8.0% -5.1%$38.18 347,362 7.5% 6.7%
2012 98 11.1% -12.1%$35.35 28,606 0.7% -1.0%
2011 88 5.2% -20.9%$31.82 66,031 1.7% -4.0%
2010 84 -6.8% -24.8%$30.25 215,473 5.7% -1.3%
2009 90 -10.3% -19.3%$32.46 263,387 6.9% -2.2%
2008 100 8.6% -10.0%$36.21 346,313 9.1% 7.4%
2007 92 16.2% -17.1%$33.35 49,050 1.7% 0.9%
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Luis Tamborrel, Tamborrel Properties 281-813-6027 Page 18
Rent & VacancyThe Woodlands Office
3 STAR RENT & VACANCY
Market Rent
Per SF Index % Growth Vs Hist PeakYear
Vacancy
SF Percent Ppts Chg
2023 130 1.4% 4.0%$29.95 844,501 11.5% -0.1%
2022 128 1.3% 2.6%$29.54 851,418 11.6% 0.2%
2021 126 1.2% 1.2%$29.15 836,104 11.4% -0.6%
2020 125 0.8% 0%$28.79 877,387 11.9% -0.3%
2019 124 -0.8% -0.8%$28.57 878,993 12.2% -0.5%
YTD 124 -0.9% -0.9%$28.54 1,035,445 14.3% 1.7%
2018 125 1.8% 0%$28.80 904,699 12.6% 0.7%
2017 123 2.5% -1.7%$28.30 843,648 11.9% 1.4%
2016 120 -0.9% -4.1%$27.61 739,949 10.5% 0.9%
2015 121 -2.8% -3.3%$27.86 665,758 9.6% 2.1%
2014 124 8.2% -0.5%$28.66 508,787 7.5% 1.3%
2013 115 3.3% -8.1%$26.48 401,991 6.2% -0.2%
2012 111 13.4% -11.0%$25.63 402,010 6.4% -4.5%
2011 98 2.7% -21.5%$22.60 665,694 11.0% -4.1%
2010 95 -5.1% -23.6%$22.01 890,356 15.1% 0%
2009 101 0.6% -19.5%$23.19 875,891 15.1% 4.9%
2008 100 3.8% -20.0%$23.05 551,506 10.2% 3.7%
2007 96 7.1% -22.9%$22.21 323,942 6.5% -2.5%
1 & 2 STAR RENT & VACANCY
Market Rent
Per SF Index % Growth Vs Hist PeakYear
Vacancy
SF Percent Ppts Chg
2023 119 1.5% 2.2%$24.21 137,766 8.6% -0.4%
2022 118 1.4% 0.7%$23.87 150,189 9.0% 0%
2021 116 1.3% -0.7%$23.53 156,136 8.9% 0%
2020 114 0.8% -2.0%$23.23 163,162 9.0% -0.7%
2019 113 0.4% -2.8%$23.04 182,458 9.6% 1.6%
YTD 113 0.2% -2.9%$23.00 185,344 9.7% 1.7%
2018 113 1.8% -3.2%$22.95 153,195 8.1% 0.7%
2017 111 -0.5% -4.8%$22.55 138,276 7.3% 0.1%
2016 112 -4.4% -4.4%$22.67 137,073 7.2% 1.3%
2015 117 4.0% 0%$23.70 111,258 5.9% -0.9%
2014 112 0% -3.9%$22.79 126,595 6.8% -0.8%
2013 112 15.3% -3.9%$22.78 140,455 7.5% -0.7%
2012 97 -1.2% -16.6%$19.77 153,524 8.2% -4.8%
2011 99 7.1% -15.5%$20.02 240,716 13.0% -3.9%
2010 92 -2.9% -21.1%$18.69 308,229 16.9% 7.1%
2009 95 -5.2% -18.8%$19.24 177,467 9.8% 3.1%
2008 100 1.3% -14.3%$20.31 119,755 6.7% -0.4%
2007 99 9.7% -15.4%$20.05 125,576 7.1% -2.0%
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Luis Tamborrel, Tamborrel Properties 281-813-6027 Page 19
Sale TrendsThe Woodlands Office
OVERALL SALES
Completed Transactions (1)
Turnover Avg Price/SFDeals VolumeYear
Market Pricing Trends (2)
Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate
2023 -- - -- 152- $261.94 7.4%
2022 -- - -- 152- $260.57 7.4%
2021 -- - -- 152- $261.16 7.3%
2020 -- - -- 151- $259.22 7.2%
2019 -- - -- 147- $253.34 7.2%
YTD $176.1 M35 5.0% $434.77$25,118,571 1466.0% $251.80 7.2%
2018 $55.3 M33 3.0% $199.60$10,849,708 1477.6% $253.02 7.1%
2017 $5.2 M27 1.2% $181.12$2,605,750 1476.0% $252.64 7.0%
2016 $15.7 M34 2.1% $354.27$3,785,448 1497.6% $256.10 6.9%
2015 $147.9 M35 4.1% $233.52$14,792,893 1496.0% $256.89 6.8%
2014 $30.6 M52 1.9% $268.53$5,944,602 1477.1% $253.43 6.7%
2013 $124.9 M27 5.8% $338.11$31,225,000 1346.2% $229.92 7.0%
2012 $218.4 M45 10.2% $218.39$16,800,292 1248.1% $212.84 7.3%
2011 $3.6 M19 1.1% $73.21$1,104,333 11515.0% $197.68 7.7%
2010 $70.3 M19 4.6% $248.74$17,500,000 1027.5% $175.14 8.3%
2009 $46.9 M18 2.1% $211.15$22,635,000 88- $151.99 9.3%
2008 $95.7 M41 4.7% $268.73$15,651,667 1008.0% $171.89 8.8%
(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.
(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.
4 & 5 STAR SALES
Completed Transactions (1)
Turnover Avg Price/SFDeals VolumeYear
Market Pricing Trends (2)
Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate
2023 -- - -- 154- $291.13 7.2%
2022 -- - -- 153- $289.55 7.1%
2021 -- - -- 154- $290.19 7.0%
2020 -- - -- 152- $287.85 7.0%
2019 -- - -- 149- $280.81 7.0%
YTD $173.0 M4 6.0% $457.19$86,500,000 1486.0% $278.87 7.0%
2018 $22.0 M4 1.7% $143.94$21,997,344 1496.9% $281.46 6.9%
2017 -- - -- 148- $279.23 6.8%
2016 $0 M1 0% -- 149- $281.00 6.7%
2015 $0 M1 0.2% -- 149- $281.62 6.6%
2014 $0 M1 0.1% -- 147- $277.40 6.5%
2013 $124.5 M2 7.9% $340.10$62,250,000 1355.9% $253.98 6.8%
2012 $126.8 M3 14.0% $234.35$42,266,667 1258.1% $235.19 7.1%
2011 -- - -- 116- $218.77 7.4%
2010 -- - -- 102- $192.62 8.1%
2009 $45.0 M1 5.4% $217.03$45,000,000 88- $166.85 9.0%
2008 $85.2 M1 8.1% $276.79$85,250,000 100- $188.78 8.5%
(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.
(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.
9/6/2019Copyrighted report licensed to Tamborrel Properties - 786369.
Luis Tamborrel, Tamborrel Properties 281-813-6027 Page 20
Sale TrendsThe Woodlands Office
3 STAR SALES
Completed Transactions (1)
Turnover Avg Price/SFDeals VolumeYear
Market Pricing Trends (2)
Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate
2023 -- - -- 149- $232.99 7.7%
2022 -- - -- 148- $231.89 7.6%
2021 -- - -- 148- $232.50 7.5%
2020 -- - -- 147- $231.10 7.5%
2019 -- - -- 145- $226.69 7.5%
YTD $1.8 M20 3.9% $88.95$518,333 144- $225.74 7.5%
2018 $31.5 M19 5.0% $273.94$15,239,776 1438.4% $224.90 7.4%
2017 $5.2 M18 3.2% $181.12$2,605,750 1456.0% $227.41 7.2%
2016 $13.2 M23 3.3% $391.38$4,230,598 1497.6% $233.67 7.0%
2015 $132.4 M23 10.3% $238.08$16,553,002 1506.0% $234.78 7.0%
2014 $29.0 M40 3.5% $273.33$9,383,171 1487.1% $232.78 6.9%
2013 $0 M8 4.5% -- 1326.7% $207.39 7.3%
2012 $89.3 M26 9.1% $203.03$12,759,779 1228.2% $191.99 7.6%
2011 $0.7 M13 1.3% $134.08$450,000 11315.0% $177.80 8.0%
2010 $70.3 M14 8.3% $248.74$17,500,000 1027.5% $159.50 8.6%
2009 $1.9 M16 0.6% $129.34$270,000 89- $138.90 9.5%
2008 $10.0 M39 3.8% $222.33$2,043,750 1008.0% $156.78 9.0%
(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.
(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.
1 & 2 STAR SALES
Completed Transactions (1)
Turnover Avg Price/SFDeals VolumeYear
Market Pricing Trends (2)
Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate
2023 -- - -- 149- $152.83 8.2%
2022 -- - -- 148- $151.92 8.1%
2021 -- - -- 149- $152.16 8.0%
2020 -- - -- 148- $151.19 8.0%
2019 -- - -- 145- $148.25 8.0%
YTD $1.3 M11 1.7% $212.15$637,500 144- $147.59 8.0%
2018 $1.8 M10 4.2% $195.44$885,823 1436.5% $146.35 7.9%
2017 $0 M9 1.7% -- 145- $148.83 7.7%
2016 $2.4 M10 11.7% $234.18$2,450,000 151- $154.29 7.5%
2015 $15.5 M11 7.5% $200.69$7,752,454 152- $155.15 7.4%
2014 $1.6 M11 3.7% $202.80$786,750 148- $151.83 7.4%
2013 $0.4 M17 4.9% $120.05$200,000 132- $134.80 7.8%
2012 $2.3 M16 6.3% $119.94$761,782 121- $124.24 8.2%
2011 $2.9 M6 3.1% $65.57$1,431,500 112- $114.80 8.6%
2010 $0 M5 2.1% -- 101- $103.26 9.2%
2009 $0 M1 0.2% -- 88- $90.15 10.3%
2008 $0.5 M1 0.2% $146.97$485,000 100- $102.38 9.7%
(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.
(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.
9/6/2019Copyrighted report licensed to Tamborrel Properties - 786369.
Luis Tamborrel, Tamborrel Properties 281-813-6027 Page 21
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