EXPLORING THE GROWING APPEAL TO SUBURBAN OFFICE SPACE: ARE MORE BUSINESSES MAKING THE MOVE?
November 8, 2024 (Houston) –
The Houston office market has witnessed a notable shift as businesses increasingly look beyond the city’s urban core to suburban submarkets like The Woodlands and Cypress. This shift has been driven by evolving business needs, lifestyle preferences, and strategic growth considerations that are transforming how companies approach their leasing decisions.
As suburban submarkets, offering premier office space has emerged as attractive alternatives to downtown spaces for various reasons. These areas often offer lower leasing rates, which can be an essential factor for businesses aiming to optimize their overhead costs. Additionally, they present opportunities for companies to secure more expansive and modern office spaces that better accommodate flexible work environments. The demand for adaptability in office layouts has surged in recent years as hybrid and collaborative work models continue to evolve.
Furthermore, suburban submarkets such The Woodlands/Conroe Submarket, known for its well-planned infrastructure, ample green spaces, and high-quality lifestyle amenities, adds to its appeal. Companies recognize that attracting and retaining talent often hinges on quality-of-life factors. Suburban areas with good schools, parks, and vibrant community offerings provide a competitive advantage in recruitment efforts, especially as work-life balance gains importance for employees.
One Bridgeland Green, located in the newest section of the thriving Houston suburb of Cypress, is currently one of the largest office developments in the metro area. This mass-timber project showcases the latest trend in suburban office spaces, offering all the modern amenities desired in an office building while seamlessly integrating with the natural surroundings and providing abundant outdoor spaces.
While interest in suburban office spaces has been steadily rising, as reflected in the leasing statistics for the third quarter of this year, large corporations—particularly in the oil and gas sector—tend to maintain an image that is often best represented by offices within the urban core. This has prevented any significant escalation in the existing concern in relation to current occupancy rates of urban-core buildings. However, landlords are taking note of the amenities offered by suburban offices and are finding ways to replicate these features, despite the constraints of limited land area.
The shift in interest is further supported by data showing higher occupancy rates and new construction projects in suburban areas. Businesses across both urban and suburban submarkets continue to prioritize modern, adaptable office spaces that accommodate both in-person collaboration and remote work, aligning with long-term workforce trends and evolving expectations.
In sum, the demand for suburban office leasing, exemplified by notable trends in the third quarter of the year, reflects a broader shift in business priorities and employee lifestyle preferences. A notable signaling a dynamic evolution in Houston’s commercial real estate landscape that will persist.
Source: Lee & Associates – Houston, Max Welch, Associate
About Lee & Associates – Houston
Lee & Associates – Houston is a fully-integrated commercial real estate company with unrivaled market knowledge and an unwavering commitment to integrity and excellence. Our business-minded brokers specialize in office, industrial, and land real estate investments. Lee & Associates – Houston is part of a nationwide network of brokers in more than 80 offices in North America. The brokerage is uniquely qualified to support our client’s real estate needs in Houston, across Texas, and throughout the US. For more information, visit lee-associates.com/houston.