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LAWIN.news

The Woodlands: A Rising Power in Office Leasing

by Mae De Vera, LAWIN.news December 19, 2024
written by Mae De Vera, LAWIN.news December 19, 2024
Courtesy Howard Hughes
155

The Woodlands, a suburb situated just north of Houston, is steadily becoming a formidable force in the office leasing market. Over the past three months, the area has seen a flurry of activity, with seven new tenants finalizing lease agreements, bolstering its reputation as a thriving economic hub. Positioned approximately 30 miles from downtown Houston, The Woodlands is spearheading growth in the office leasing sector. Howard Hughes’ recent news release highlights the success of premier locations like Hughes Landing, Waterway Plaza II, and 3831 Technology Forest Dr., which are outperforming the overall Houston office leasing market. The Woodlands enjoys a higher occupancy rate at 90 percent, surpassing Houston’s 75 percent.

Alex Hancock, Senior Vice President and National Sales & Leasing at Howard Hughes, underscored The Woodlands’ appeal. He noted that the area delivers more than just premium office spaces, offering a comprehensive lifestyle experience that today’s leading companies seek for their employees.

In recent months, The Woodlands has attracted a variety of industries, including chemical distribution, energy financial services, healthcare, real estate, and technology. Companies such as Tachus, a leading fiber Internet provider; Aktopa, a chemical distribution enterprise; WorkHub Developments, a real estate developer; and Sydenham Clinic, a concierge healthcare provider, have secured office space at One or Three Hughes Landing, or Technology Forest.

Moreover, several companies have chosen to expand their current leases. Beusa, an energy company, has increased its footprint by an additional 14,000 square feet at Three Hughes Landing. Weaver and Tidwell, a national accounting firm, has expanded by 26,031 square feet at One Hughes Landing. White Wing Wealth Management, a financial advisory firm, has relocated to Waterway Plaza II, adding an extra 7,200 square feet to its lease.

The growth within this submarket is largely due to a trend known as “flight-to-quality,” where companies are moving from older office spaces to “Class A” buildings that offer enhanced amenities and convenient access to mixed-use retail, shopping centers, and recreational trails. Such locations are increasingly preferred by employers aiming to situate their operations closer to the suburbs where many of their employees reside.

According to Cushman & Wakefield’s data, Houston’s central business districts experienced a high availability rate of 32.6 percent in the third quarter. In contrast, the availability rate in The Woodlands/Spring area was notably lower at 20.7 percent, reflecting the area’s growing appeal.

Hancock also emphasized the unique qualities of The Woodlands, highlighting its blend of world-class office spaces, urban walkability, and a naturally wooded, sustainable environment. This combination cultivates an unmatched work-life balance that consistently attracts and retains prestigious organizations to the area, reinforcing The Woodlands as a leading destination for businesses seeking excellence and innovation.

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Mae De Vera, LAWIN.news

Mae De Vera is a passionate advocate, creative professional, and entrepreneur. A graduate of Political Science from Saint Louis University and a law student of Arellano University, Mae is dedicated to empowering marginalized communities through outreach programs and advocacy. With a background in digital artwork, event flyer design, ESL teaching, and business management, Mae brings a versatile skill set to her endeavors. She also embraces her love for nature through farming, integrating sustainability into her life. Mae’s leadership experience as a consistent school student leader reflects her commitment to making a difference. Today, she combines her creativity, advocacy, and entrepreneurial spirit to create impactful stories and initiatives that inspire change. Disclaimer: The views and beliefs expressed by the author do not necessarily represent those of LAWIN.news, its management, editorial board, or staff.

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