THE WOODLANDS – (Realty News Report) – Colliers International reports that The Woodlands office market posted positive second-quarter results, with improving occupancy and rising rental rates.
Class A rents averaged $37.30 per square foot, the highest level in over a decade, according to Colliers.
Uncertainty surrounds the two 30-story Woodlands towers that were occupied by Anadarko Petroleum, which is being acquired by Occidental Petroleum. Although no definitive plans have been announced, the corporate merger could lead to significant vacant space. Previously reported plans from Occidental to vacate 800,000 square feet in Greenway Plaza and relocate to the former Conoco campus in the Energy Corridor were withdrawn, avoiding a major disruption to the Houston office market.
The Woodlands’ overall vacancy rate has declined notably. Colliers reports the overall vacancy fell to 7.9 percent in the second quarter, down from 9.2 percent in the first quarter. While Houston’s broader office absorption has been uneven, The Woodlands has recorded year-to-date positive absorption of 543,000 square feet.
“The Woodlands office submarket is the bright spot in Houston’s struggling office market,” Colliers said.
Located 28 miles north of downtown Houston, The Woodlands contains 17.2 million square feet of office space, of which 13 million square feet is Class A.
August 5, 2019 Realty News Report Copyright 2019
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