The Woodlands area is witnessing a shift in construction trends, with a notable decrease in industrial buildings and a rise in retail buildings. According to data from Caldwell Cos., the number of industrial buildings under construction has dropped from 26 to 14 since the second quarter of 2025. In contrast, retail construction projects have increased from eight to 10 during the same period.

Office and Retail Space Trends

Office rental rates in The Woodlands area have continued to rise, with a three-year trend of increasing rates. As of June 8, office rental rates have increased compared to the previous year. Industrial rates have also risen slightly after a decrease from 2024 to 2025. Retail rental rates, which had dipped from 2023 to 2025, have now risen to $27.86 monthly rent per square foot, up from $20.58 in 2025’s second-quarter report.

The occupancy rates for office and retail spaces in The Woodlands area have increased slightly this June compared to the second quarter of 2025. However, industrial leasing has undergone a slight drop compared to the second quarter of 2025.

Original reporting: Community Impact — Houston — read the source article.