Portland Industrial Continues to Post Positive Net Gains

Overall, major West Coast markets have trended positively for industrial product despite pandemic conditions, with local sentiment for tenants improving quarter-over-quarter. Though recovery is still forecast for 2021, the Portland industrial market has continued to record positive net gains overall, according to a CBRE research report.

Drilling down into industrial sectors, third-party logistics firms are the main drivers of airport industrial activity, accounting for 29.6 percent of activity in major airport submarkets, followed by general retail and wholesale (24.4 percent), and pure-play e-commerce-only companies (16 percent).

“As e-commerce providers and retailers compete to offer faster delivery times, air freight will increasingly be a key component of distribution strategy,” said John Morris, executive managing director and leader of CBRE’s Americas industrial and logistics business. “Rent for warehouses and distribution centers around major air cargo hubs should continue to rise, especially in markets where there is limited development space. Customers today expect fast delivery, but there is a cost associated with leveraging air transportation for e-commerce delivery.”