Portland Industrial Real Estate – Market Update 4Q 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 4Q 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 Fourth 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
We ended the year as expected, in positive territory. The Portland and SW Washington markets continued performing in the same initial direction as we did late in 2015 with good activity (we wouldn’t say red-hot) and trending in a positive direction. Developers have responded to the demand, both in the larger SF class (100,000 SF and up) and smaller, 20-50,000 SF range with over 1.9MM SF under construction and another 2MM+ SF in the planning stages for late 2017, through 2018. Larger users looking for space in excess of 250,000 SF continue to find very few alternatives statewide. Ground-up opportunities exist but delivery dates (today) push projects well into 2018, which in many cases doesn’t work for 3PL’s sourcing space for a particular client. Strong fundamentals and lack of ground-up opportunities will continue to fuel investment sales of existing properties and demand for Class A space should outpace supply in 2017.
Portland Industrial Market: Third Quarter Key Statistics
Vacancy rates are at an all-time low, ranging from 3.5% – 3.9%.
- Development activity is strong with over 1.9MM SF of space under various stages of construction and another 2.0MM SF planned for late 2017 into 2018.
- Over 2MM SF of active users are currently in the market. Including 1MM SF dedicated solely to an Amazon build to suit in Troutdale.
Average Asking Lease Rates in the Portland Area
- Rivergate $.37 – $.42/SF
Airport Way & East Columbia Corridor $.43 – $.50/SF
Southeast (Clackamas/Milwaukie) $.40 – $.45/SF
NW / NE / SE Close In $.50 – $.75/SF
Southwest & West Side $.42 – $.55/SF
Tigard / Tualatin / Wilsonville $.42 – $.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
16,000-30,000 SF $90-$125/SF
31,000-60,000 SF $85-$115/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.