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Portland Market Reports

Portland Office Market

Average Asking Rent (Price/SF) $30.39
Vacancy Rate (%) 10.0%
Net Absorption (SF)

As 2019 concludes, Portland's office market reports another year of steady growth. Vacancy has compressed, from 10.9% at the end of 2018 to 10.0% this quarter. Rent growth has risen continuously, landing at $30.39/SF, an increase of $1.38/SF, or 4.8%, from last year. Each quarter of 2019 reported positive net absorption, with 142,548 square feet absorbed in the fourth quarter for an annual total of 648,930 square feet. This marks an increase of 181,164 square feet, or 38.7%, over the 467,766 square feet absorbed in 2018. The construction pipeline remains steady. While only 80,000 square feet of new construction completed in 2019, almost 1.0 million square feet of office space is currently under construction. Much of this construction is scheduled to complete in 2020. As the nation weighs the possibility of an economic downturn, the Portland office market continues to exhibit the growth patterns responsible for the longest real estate cycle in U.S. history

Portland Industrial Market

Average Asking Rent (Price/SF)            $9.16
Vacancy Rate (%)              4.6%
Net Absorption (SF)        134,027

Throughout the Portland area, 5.3 million square feet of space is under construction among 26 industrial buildings, more than double the 2.6 million square feet under construction a year ago. This substantial increase in the industrial construction pipeline can perhaps be attributed to Portland's prosperous and ever-evolving industrial economy, which benefits from shared nationwide trends and unique local strengths. This past year saw impressive rent growth of $0.07/SF to $0.76/SF, a 10.1% increase. Vacancy also ticked up, to 4.6% from 3.6% at the end of last year. Despite 345,344 square feet of positive net absorption recorded for 2019, an additional 2.3 million square feet of completed construction was added to the inventory. Much of this space is currently vacant but likely to be absorbed over the next couple of quarters. When all of the reported new construction is completed, the inventory will increase from 220.8 million square feet to 226.2 million square feet, a 2.4% increase. Nevertheless, many projects under construction are owned and built by the organizations that intend to occupy that space, such as the expansions of Intel and UNFI as well as Columbia Distributing's new campus. There is still a major need for more industrial space, as only 36%, or 1.9 million square feet, of the space under construction is leasable.

Portland Office Market Report
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Portland Industrial Market
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