THE WOODLANDS, Texas – Colliers International reported an outstanding performance in The Woodlands office market during the fourth quarter of 2018, with 385,000 square feet of positive absorption. This marked the strongest quarter for the submarket since 2015.
The Woodlands comprises 127 office buildings totaling 17.2 million square feet, and it recorded a direct vacancy rate of 10.1 percent. Class A sublease availability remains minimal, with under 100,000 square feet on the market.
Howard Hughes Corp. announced substantial leasing activity, taking 141,000 square feet in the former CB&I buildings. Additionally, HP occupied 378,000 square feet in Springwoods Village, reinforcing demand in the submarket.
The positive absorption and major lease commitments reflect growing momentum for office demand in The Woodlands. Continued corporate relocations and expansions, together with limited sublease supply, contributed to improved occupancy and healthy leasing conditions in late 2018. Market observers noted that quality, well-located properties—particularly in Springwoods Village and other master-planned areas—attracted significant tenant interest.
Overall, the fourth-quarter results signaled renewed confidence among employers and investors in the area’s office market, suggesting potential for sustained leasing activity and stability in vacancy rates as new and existing tenants finalize space decisions.