The Woodlands office market has continued to perform well over the second quarter of 2018. The total office space leased in this market remains strong. 85.5% overall with Class A at 81.4% and Class B slightly higher at 88%. We are seeing a trend for Class A buildings as vacancy drops the rates follow suit. Class B rates are climbing allowing vacancy rates to hold steady.
At the commencement of 2Q18, we see an increase in new and planned construction of medical office buildings in The Woodlands area as the health care industry continues to grow. This submarket is now home to Texas Children’s Hospital The Woodlands, Houston Methodist The Woodlands Hospital, MD Anderson The Woodlands, CHI St. Lukes Health – Lakeside Hospital, CHI St. Lukes Health – Springwoods Village Hospital and Memorial Hermann The Woodlands Medical Center, enticing medical doctors looking to enter the expanding market with so many options to send their patients to.
There is no question that activity has continued to increase this year and vacancy rates are remaining steady. The future of office leasing in The Woodlands looks to remain strong as we head into the 3rd quarter.
Presented by: Lisa Hughes & Pamela Sprouse of the J. Beard Real Estate Company
To learn more about The J. Beard Real Estate Company, visit www.jbeardcompany.com.