Colliers The Woodlands | Office Market Report | Q1 2024

Key Takeaways

  • Activity levels slow
  • Net absorption down
  • No construction or deliveries


The first-quarter vacancy rate rose to 18.5%, 120 basis points (BPS) up from the prior quarter and 60 BPS up year-over year. The rate appears favorable when compared to metro Houston’s 26.7% and the Houston CBD’s 30.8% for first quarter. Net absorption fell in the first quarter to a negative 147,088 SF, which is attributed to several contractions including U.S. Oncology, who moved out of 200,000 SF in 10101 Woodloch Forest and into 26,530 SF in The Woodlands Towers at The Waterway. Leasing activity also slowed this quarter, while there were no buildings delivered, started or under construction. Average weighted asking rental rates decreased to $30.26 PSF but are up 2.0% year-over year. Similarly, the Class A weighted average rental rates dipped to $35.92 PSF, although direct asking gross rates average $42.12 PSF, ranging from $30 PSF to $55 PSF in the 40 Class A buildings.

2024 Q1 The Woodlands Office Snapshot Colliers

Market Indicators 

Historic Comparison 

Market Fundamentals

The Woodlands office market started the year slowly with no properties delivered or under construction. Net absorption turned to a negative 147,088 square feet, driving the total vacancy to a 1.2% increase.

Recent Transactions

*Colliers Transactions

The Woodlands Submarket Map