The construction start follows the successful lease-up of Waterway Plaza One, a 223,000-sf building that is more than 90% leased. Construction of Waterway Plaza One will be completed in November. The Waterway Plaza One and Two buildings are being constructed along a 1.25-mile water amenity that will link the office buildings and provide a site for waterside restaurants and entertainment. The Waterway will be completed next fall.

"With construction well under way on the first phase of development of The Woodlands Waterway, demand for prime office space in this high-profile location is growing," says Michael Richmond, president of The Woodlands Operating Co. The Woodlands, located 27 miles north of downtown Houston, is a joint venture of Morgan Stanley Partnership and Crescent Operating Inc., an affiliate of Crescent Real Estate Equities. The 5 million sf of office space in the The Woodlands is more than 95% leased.