According to The Woodlands Operating Corp office space in The Woodlands is now at 98% occupancy. Lease rates are also at an all time high. The impact of the absorbed supply is spilling over in to the “fringe” areas outside The Woodlands into Spring, Conroe, Magnolia, Tomball office and retail areas. Investors renewed sense of confidence will influence values as higher rents are pushing up capitalization rates.
Several factors are influencing the extremely high demands such as migration of companies from all over but most notably from Mexico and California. The internal growth of existing companies in The Woodlands both energy and non energy related also contributes. Pent up demand has let loose sparking several new construction ventures that are pre-leased already. Exxon new campus, Anadarko expansion are only a part of the new activity. Anticipated revival of hyper growth will provide supply behind the demand levels keeping real estate investments properties very lucrative.