The Woodlands

Alex Sutton, co-president of The Woodlands Development Company, discussed some of these projects during a January meeting of the North Houston Association. Sutton said two primary focuses of development in the Town Center are continual build out of what he called the “Super Block” and a high-rise condominium near Waterway Square.

Projected to be located near the McKesson (formerly U.S. Oncology) building at 10101 Woodloch Forest Drive is a multi-story commercial and office development, Sutton said. The project was initially slated for a single tenant, but Sutton said demand by potential occupants has been strong and the facility could end up housing multiple tenants.

With the inclusion of another multi-story office development, Sutton said a parking garage will be required. There has been some consideration, he said, in lining the parking facility with apartments.

Multi-story, multi-tenant office facilities continue to sprout up in Town Center, most notably 3 Waterway Square Place, which Sutton said is “80 percent committed” even before the concrete foundation has been poured.

There is also substantial focus on increased housing in Town Center as evidenced by Sutton’s announcement of a 135 to 140-unit residential condominium high rise adjacent to the Waterway Square parking garage on Lake Robbins Drive. While Sutton said there is no construction date as of yet, the project is something the Development Company has set as a priority and would like to see it break ground “in the next few years.”

However, the driving factor in the development of the high rise condominium is buyer market concerns, Sutton said.

“The condo market is a tricky one,” he said. “Judging the depth of it is difficult. The ultimate user financing is tough. After the subprime mortgage crisis, the rules got rewritten. It’s much more difficult for a user to get a mortgage for a condo.”

Also in the works is a second phase of The Millennium apartments on Waterway Avenue. Developed by the Dinerstein Company, the first phase of the facility has 400 units and is 95 percent leased.

Overall demand for office space in The Woodlands is very high. Sutton said that only 2.5 percent of office space in The Woodlands remains vacant, a number he said even “may be a little high.”

“We’ve built the brand. We’ve built the demand,” he said.

Executive Director of the North Houston Association Paula Lentz said such growth has had a strong impact on the region served by the association.

“For the last couple of years, with the economy the way that it’s been, obviously [commercial development] has had a real impact on the association members,” Lentz said. “From our viewpoint, opportunities to enhance the region bring new work, new jobs. We’re excited that new growth is happening in our region.”