THE WOODLANDS – (Realty News Report) – A significant amount of prime office space has been leased in The Woodlands, reports Howard Hughes Corp., the developer of the 28,000-acre master planned community.
Approximately 133,948 SF of office space has been leased the company’s 9950 Woodloch Forest Tower, a 30-story building in The Woodlands, near Interstate 45, north of Houston.
One of the tallest buildings between Houston and Dallas, the office tower, one of two buildings comprising The Woodlands Towers at The Waterway, has secured new tenants Kodiak Gas Services, LLC, Kraton Corporation, and US Oncology, Inc., as well as an expansion by Western Midstream Partners, LP, with new leases spanning five full floors.
“The demand for office space within The Woodlands Towers at The Waterway has been notably robust as businesses look to create an office environment that attracts today’s highly skilled, educated employees while providing opportunities for long-term growth,” said Jim Carman, President of the Houston Region for The Howard Hughes Corp. “Office leasing momentum in The Woodlands remains strong, with a vacancy rate nearly half the level being experienced in Houston’s central business district, exemplifying the flight to quality that is attracting companies across various industries to our community.”
Howard Hughes markets The Woodlands as a corporate office location and cites its supply of flexible office space and build-to-suit opportunities in “an urban walkable setting.”
In the first quarter of 2023, office space in The Woodlands submarket had a Class A vacancy rate of 14.7 percent, Colliers reported. By comparison, the citywide Houston Class A vacancy rate was much higher at 25.8 percent, Colliers said in its first quarter report.
The Occupiers
The 595,854-SF office tower was formerly occupied by Anadarko Petroleum, which departed after it was acquired by Occidental Petroleum in 2019 for $55 billion. Colliers leases the building on behalf of Howard Hughes Corp.
Companies involved in the latest round of leasing activity include: Kodiak Gas Services, LLC, Kraton Corporation, US Oncology, Inc., and Western Midstream Partners, LP. The firms represent diverse industries, including compression services, specialty polymers production, cancer care network, and midstream energy assets.
Kodiak Gas Services, LLC, a leading operator of contract compression infrastructure in the United States, is relocating its corporate headquarters from Montgomery, Texas to The Woodlands. The company has leased two floors of the tower, totaling 53,060 SF.
Kraton Corporation, a leading global sustainable producer of specialty polymers and high-value biobased performance products derived from renewable resources, is relocating from North Houston and will occupy one full floor with 27,179 SF.
US Oncology, Inc. has leased one full floor with 26,530 SF The company empowers the delivery of advanced integrated cancer care through its network of independent physicians who share expertise and resources to provide quality, value-based care close to home. The company is relocating its offices from 10101 Woodloch Forest Drive in The Woodlands.
Western Midstream Partners, LP acquires, owns, develops, and operates midstream energy assets and has leased an additional full floor with 27,179 SF for a total of 133,960 SF of office space within 9950 Woodloch Forest Tower.
Kodiak Gas Services, LLC, was represented by Anthony Squillante and Drew Coupe with Avison Young. Kraton Corporation was represented by Reggie Beavan, Adam Grimm and Audrey Selber with Newmark. US Oncology, Inc., was represented by Steve Andrews with Fischer. Western Midstream Partners, LP, was represented by Chad Beck with Cushman & Wakefield. The Howard Hughes Corporation was represented by Robert S. Parsley, Norman V. Munoz and Jillian Fredericks with Colliers.
The Woodlands, a 28,500-acre master planned community located 27 miles north of downtown Houston, was recognized two consecutive years, 2022 and 2021, as the #1 Best Community to Live in America by Niche. The Woodlands offers an unprecedented 28% of green space, leading the way among master planned communities that practice environmental preservation. It is home to 120,000 people, and nearly 67,000 people work there.
Howard Hughes Corp. develops The Woodlands, Bridgeland, The Woodlands Hills and other master planned communities around the nation, including Summerlin in Las Vegas. Other Howard Hughes developments include the Seaport in New York City; Downtown Columbia, Maryland; Ward Village in Honolulu, Hawaii; and the 37,000-acre Teravalis near Phoenix.
The Howard Hughes developments are the site of a significant amount of new housing construction. As a nation, the U.S. has a housing shortage of about 4 million housing units, according to John Saxon, chief of staff for HHC. Last week, Saxon spoke at the 57th Annual Real Estate Journalism Conference presented by NAREE – the National Association of Real Estate Editors – in Las Vegas.
June 13, 2023 Realty News Report Copyright 2023
Feature Photo credit: The Howard Hughes Corp.
John Saxon Photo: NAREE – #NAREE2023
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File: Major Office Leasing in The Woodlands