In comparing the 1st Quarter of 2017 to the 1st Quarter of 2018, there has been a considerable reduction in overall available office space in The Woodlands to just below an estimated 2,000,000 square feet of direct and sublet space. While office space continues to lease up, the full service asking rates are slightly below where they were in early 2017. Competition for Tenants is fierce and what appears to be driving full service rents below where they have been in the past. While there is no new construction planned to date, this trend appears to be the norm for the foreseeable future.
Class “A” and Class “B” vacant space in The Woodlands has begun to even itself out from a percentage basis. A year ago Class “A” clearly dominated the overall available space in the market. Now Class “B” has just over 42% of the vacancy in the market and Class “A” is just over 54%.
Full service asking rates in The Woodlands are near an estimated $29psf/yr. and Down-town rates are not far behind at just above $28psf/yr. on average.
There is no question that the execution of new leases in our market has picked up significantly this year. The future of the commercial real estate market appears to be heading in the right direction.
Presented by: Tim Maczko & Lisa Hughes of the J. Beard Real Estate Company
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