Portland Office Market
Net absorption in the first quarter of 2024 was negative 659,116 SF. The CBD bore the brunt of this decline, accounting for much of the negative absorption with a total of negative 477,051 SF. The Sunset Corridor was the second hardest hit submarket with negative 94,794 SF of absorption for the quarter. There are no new projects in the development pipeline for office assets in the Portland market. With the market becoming increasingly saturated with inventory, the demand for new construction starts in the region is minimal. Vacancy rates across the Portland market surged to 22.1%, marking a 170-basis-point increase over the fourth quarter of 2023. Despite this, asking rates have remained relatively steady. This suggests that landlords are reluctant to adjust pricing despite the prevailing soft market conditions.
Download Portland Office Market Report 1Q24Portland Industrial Market
Vacancy rose for industrial assets to 4.5% in the first quarter of 2024. The increase in availability was seen across urban and suburban assets, resisting the trend of suburban areas outperforming close-in markets. Activity has continued to ease as compared to the levels seen in 2022. Total leasing activity to begin the year showed a 6.2% decrease in deal volume as compared to the fourth quarter of 2023. Available sublease space reached 2.8 million SF, trending at more than double of the Portland’s historical average of 1.1 million SF. This number is expected to rise as tenants continue to market excess space.
Download Portland Industrial Market 1Q24