Market Indicators Class A Class B

VACANCY

NET ABSORPTION

CONSTRUCTION

RENTAL RATE

NEW SUPPLY

The Woodlands

The Woodlands Class A office submarket records over 350,000 SF of positive absorption in 2019

Research Snapshot

THE WOODLANDS | OFFICEQ4 2019

STATISTICAL SUMMARY

1488

2920249

1314

242

Huffsmith-Kohrville

WoodlandsParkway

ResearchForest

Needham Rd.

Grogan’s Mill Rd.

Spring Stuebner

Gosling Rd.Kuykendahl

To Houston CBD

WOODLANDS SUBMARKET MAP

VACANCYRENTAL

RATE

Class # of Bldgs. Total (SF) (SF) Rate (%) (SF) Rate (%) Total (SF) Q4-2019 Q3-2019 Q4-2019 Q3-2019 AVG ($/SF)

The Woodlands

A 57 13,145,034 1,054,767 8.0% 103,196 0.8% 1,157,963 8.8% 9.5% 89,378 -263,116 $39.70B 63 4,301,965 418,184 9.7% 45,254 1.1% 463,438 10.8% 11.2% 20,180 -49,557 $32.25C 6 169,558 0 0.0% 0 0.0% 0 0.0% 0.3% 500 0 $18.73Total 126 17,616,557 1,472,951 8.4% 148,450 0.8% 1,621,401 9.2% 9.8% 110,058 -312,673 $37.58

INVENTORY DIRECT VACANCY SUBLEASE VACANCY VACANCY RATE (%)NET ABSORPTION

(SF)

The Howard Hughes Corp. purchased two Class A office towers totaling 1.4 million SF from Occidental Petroleum Corp. in December 2019. The two towers formerly owned and occupied by Anadarko, have been renamed The Woodlands Towers at The Waterway. The Howard Hughes Corp. announced plans to relocate its corporate headquarters from Two Hughes Landing to one of the buildings located at 9950 Woodloch Forest. Occidental plans to remain as a tenant in the other tower. Howard Hughes is leasing the additional available space.

The Woodlands office submarket posted positive net absorption of 110,058 SF in Q4, pushing the year-end total to 356,879 SF of positive net absorption. Looking back over the year, the largest tenant move-in adding to the positive absorption was the American Bureau of Shipping’s move into 325,000 SF at CityPlace 2. Also, WeWork took occupancy of 55,040 SF in 1725 Hughes Landing, Med-Data moved into 50,000 SF in the Havenwood Office Park and Aon Services will move into 33,312 SF at One Hughes Landing. Unfortunately, gains in net absorption made in the first half of the year were offset due to Southwestern Energy adding 288,609 SF of its space to the market for lease.

Lisa Bridges Director of Market Research | Houston

HOUSTONTEXAS THE WOODLANDS

2 The Woodlands Research Snapshot | Q4 2019 | Office | Colliers International2

The average quoted rental rates are a mix of direct and sublet rates and are based on a blend of gross and NNN. The graphs below are only intended to show rental rate trends. Actual gross rates are higher than the average rate shown in the graph.

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Class B Rental Rate and Vacancy Percentage The Woodlands, TX

Class B Rents Class B Vacancy

*Vacancy percentage includes direct and sublease space.

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Available Sublease SpaceThe Woodlands

Class A Class B

Available Sublease Space4Q 2019

Class A: 290,835 SF or 2.2% Class B: 59,840 SF or 1.4%

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Class A Rental Rate and Vacancy Percentage The Woodlands, TX

Class A Rents Class A Vacancy

*Vacancy percentage includes direct and sublease space.

3 North American Research & Forecast Report | Q4 2014 | Office Market Outlook | Colliers International

Copyright © 2015 Colliers International.The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.

Colliers International | Market000 Address, Suite # 000 Address, Suite #+1 000 000 0000colliers.com/<<market>>

FOR MORE INFORMATIONLisa BridgesDirector of Market Research | Houston+1 713 830 2125lisa.bridges@colliers.com

3 North American Research & Forecast Report | Q4 2014 | Office Market Outlook | Colliers International

Copyright © 2015 Colliers International.The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.

Colliers International | Market000 Address, Suite # 000 Address, Suite #+1 000 000 0000colliers.com/<<market>>

3 North American Research & Forecast Report | Q4 2014 | Office Market Outlook | Colliers International

Copyright © 2020 Colliers International.The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.

Colliers International | The Woodlands1790 Hughes Landing Blvd., Suite 250The Woodlands, TX 77380+1 713 830 4011colliers.com/thewoodlands

Absorption and New SupplyWOODLANDS CLASS A OFFICE

WOODLANDS CLASS B OFFICE

-400,000-200,000

0200,000400,000600,000800,000

1,000,0001,200,0001,400,0001,600,0001,800,0002,000,0002,200,0002,400,0002,600,000

Net Absorption New Supply

-150,000

-100,000

-50,000

0

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Net Absorption New Supply

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