Portland’s location, lower cost of living compared to neighboring markets and the city’s drive to accommodate budding industrial business have ensured sturdy industrial growth.
At the end of Q2 2018, the Portland industrial vacancy rate was one of the tightest among the West Coast markets with steady compression since 2010, and rents increasing.
There was 910,319 sq. ft. of positive net absorption during Q2 2018. The northeast submarket once again led the market in deal velocity with 537,935 sq. ft. of net absorption. This was followed by Clark County with 338,029 sq. ft. and then the Southwest submarket with 206,464 sq. ft.
Under construction developments is currently 70% pre-leased with the majority set to deliver in 2018. This preleased space and welcomed new projects will propel absorption over the next 12 months.