Several large-scale office developments have started to spring up outside the boundaries of The Woodlands to achieve one goal—accessibility for more employer and employee tenants, according to project developers.
Class A offices, which are considered by the Building Owners and Managers Association to have the “most prestigious buildings,” are now more readily available just outside The Woodlands.
The Wildwood Corporate offices 1 and 2 on Wildwood Forest Drive and the Sierra Pines offices 1 and 2 on Sawdust Road are examples of Class A developments that have achieved success just outside of The Woodlands, with more office projects set to begin construction being developed or due to be completed this year.
Wildwood Corporate is expected to finish construction of its second office in 2016. Sierra Pines completed construction of its second office in January.
The reason for focusing more on the outer edges of The Woodlands area, rather than in locations like Town Center, is to have more access to other parts of the surrounding area and attract more tenants, said Don Dennis, a managing partner with Archway Properties, a real estate developer for the Wildwood Corporate offices.
“Wildwood is positioned close to I-45, it has easy access to the airport and it’s near the new Grand Parkway,” Dennis said. “It attracts tenants from outside The Woodlands and makes it easier and faster than having to go into the interior of The Woodlands.”
Dennis said office developments outside The Woodlands like Wildwood are a new phenomenon in the industry. He said the trend is beginning to gain appeal among potential tenants that are seeking more upscale and larger offices.
“We’re already seeing other projects develop further south, and before we didn’t have very many around The Woodlands,” Dennis said. “There just wasn’t a lot of thought put into the developments. We think now that future outside developments will have a much higher quality and be like Wildwood. People are realizing you can build developments in these outer areas.”
Paul Coonrod, managing director and partner with Stream Realty, said the reason for developing Sierra Pines on Sawdust Road was to provide tenants with access to the township and the northern edge of Houston.
“We wanted to provide a prime site to cater to both The Woodlands employees and employees south of The Woodlands,” Coonrod said. “Our location has been successful as well—we have Fortune 200 companies like Praxair, who are currently renting 110,000 square feet in our first office. So this is just a peaceful, ideal location and [the office] provides more companies with the opportunity to rent here.”
Gil Staley, CEO of The Woodlands Area Economic Development Partnership, said the reason office developments just outside The Woodlands are successful is because of the success of the township itself.
“The Woodlands is still truly one of the most in-demand areas for company locations,” Staley said. “Other office developments are still building off the synergy of The Woodlands, even the projects that are being developed near I-45.”
Staley said developers are taking advantage of available land outside The Woodlands to build office space as a result of the growth in the township.
“What’s exciting to see is that these new developments show the confidence [developers] have in a strong, economic market, and they feel comfortable to develop projects, even in spite of the [economic] downturn,” Staley said.
