A strong financial outlook has fueled the development of office condos clustered in areas near I-45 in The Woodlands and off FM 1488 near Magnolia.

Nate Newman of Marcus and Millichap, a real estate investment services company, said the increase in office condos can be attributed to a growing economy.

"There's a lot of growth," Newman said. "The Woodlands is in an upward economic cycle."

Newman said small–business owners are cashing in on the growing economy in The Woodlands by owning the building rather than renting office space. Business owners use the space for their own business and then rent out the remaining space. Instead of paying rent to a building owner, they invest in a mortgage.

"When you have a rising economy, people are more apt to start a small business," Newman said. "Small businesses want to own a piece of the real estate."

Woodlands Economic Partnership CEO Gil Staley said along with EB-5 visas for immigrant investors and other facets, the rise in office condos is due to small–business owners taking advantage of the economy in The Woodlands market.

"They're capitalizing on this economic growth," he said. "They're keenly aware of the dynamic real estate market."

Aradio Zambrano of Woodlands Realty Professional said the uptick in office condos near Budde Road is occurring because of the close proximity to The Woodlands Town Center and because the location offers quick access to I-45. He said there are other office condos in development west of I-45 on FM 2920 and in the Kuykendahl and West Rayford roads area. In addition, there is a large development of office condos on FM 1488 east of Magnolia that will be fully developed by December 2015.

"The growth is headed out toward Magnolia," Zambrano said. "The state government considers FM 1488 the next FM 1960. It's a great artery."

Office condos fall into two categories based on their offerings. Class A tenants in The Woodlands can expect to pay up to $60 a square foot for amenities like covered parking, marble flooring, solid wood doors, 10-foot ceilings and a restaurant on the premises. While the rent is less expensive for Class B condos, the buildings tend to be older and do not offer covered parking.

"The ones near Market Street are high-priced Class A condos," Zambrano said.

USA Trade Show Designs business owner David Patterson rents office space at an office condo on Borough Park Drive. He chose the location because of the price and its close proximity to The Woodlands. He said he pays $850 a month, compared to his wife who pays $2,000 to rent an office condo at Market Street. He said his office condo offers a conference area to meet clients.

"It's affordable, cleaned every night, and after 6 p.m., [my condo] is secured at night," Patterson said.

Natalia Rowland works at Splice Communications, a business Internet provider. Splice has rented an office condo at Magnolia Crossing since 2011. The rent at Magnolia Crossing, 33300 Egypt Lane, starts at $12 a square foot.

The location and the inexpensive price of the office condos drove the company's decision to rent at Magnolia Crossing, Rowland said. The owner of her company wanted his employees to report to an office rather than work from home.

"Our boss wanted us to have an office to manage our time," Rowland said.

Debbie Thompson is the operations manager at Mid American Mortgage. Her office is at Magnolia Crossing also. She said the office is centrally located near The Woodlands, Conroe and Magnolia.

"All of our business is in this area," Thompson said. "It's a perfect location. You get a lot for your money here."