Portland Industrial Real Estate – Market Update 3Q 2016
Every quarter, Capacity Commercial Group conducts an in-depth analysis of recent market data for the Portland area, and provides a summary report to clients via newsletter. The comprehensive Capacity Commercial Group 3Q 2016 report can be found HERE.
Continue reading this blog post for a two minute overview of the report, inclusive of:
- Summary Forecast
- Portland Industrial Market: 2016 Third Quarter Key Statistics
- Average Asking Lease Rates In Portland Area Market
- Average Asking Sale Rates In Portland Area Market
- Capacity Commercial Group Overview
Capacity Commercial Group: Summary Forecast
Due to high demand and lack of new industrial space alternatives, CCG expects demand for smaller spaces in the 15,000-30,000 SF range to remain insatiable. The East Columbia Corridor/Airport areas will again show the most demand (and new spec development), followed by the I-5 Corridor. Tenants and buyers have few options and this trend is expected to continue into 2017. Investment activity is good; however, only a few properties traded in the second quarter.
Portland Industrial Market: Third Quarter Key Statistics
Vacancy rates are at an all-time low, ranging from 3.9% – 4.2%.
- Development activity is strong with over 2.3MM SF of space under various stages of construction and another 1.5MM SF planned for mid – late 2017.
- Over 2MM SF of active users are currently in the market and its firmly believed that a large majority of these will land in the Portland Metro area.
Average Asking Lease Rates in the Portland Area
- Rivergate $.36 – $.42/SF
Airport Way & East Columbia Corridor $.43 – $.50/SF
Southeast (Clackamas/Milwaukie) $.40 – $.41/SF
NW / NE / SE Close In $.50 – $.75/SF
Southwest & West Side $.42 – $.50/SF
Tigard / Tualatin / Wilsonville $.41 – $.55/SF
Clark County (Vancouver, WA) $.45 – $.55/SF
Average Asking Sale Prices in the Portland Area
5,000-15,000 SF $95-$160/SF
31,000-60,000 SF $85-$115/SF
16,000-30,000 SF $90-$125/SF
60,000 SF & Up $75-$110/SF
About Capacity Commercial Group
With over 22 active Brokers and more individual memberships within the SIOR organization, Capacity Commercial Group combines local market experience with industry expertise to provide the best information to our clients so they can make informed decisions.