Sublease Space To Impact Fundamentals in The Woodlands
The Woodlands isn’t immune from the impact of falling oil prices. Sublease space is picking up in the submarket, says J Beard VP Josh Feinberg.
There’s just shy of 300k SF of sublease vacancy available, Josh (here speaking at Bisnow’s Future of The Woodlands and Springwoods Village event last week) says, which is giving tenants significantly more options than just a year ago. He sees 34 buildings with at least a full floor of space free (typically 20k SF blocks or larger). He expects rents will be impacted, but says the market is healthy overall and that correction could bring some equilibrium to the area. Josh—who’s leasing the 250k SF Havenwood Office Park, one of very few spec buildings under construction—isn’t concerned about general overbuilding in The Woodlands area, but says it’s all about the type of project. While there’s plenty of Class-A product, there’s a need for value office.
