Report: Retail Leasing Strong in Suburban Portland

Portland’s shopping center market exhibited a mixed picture in Q3, according to a recent retail figures report by CBRE. Leasing activity in the suburbs thrived, with strong tenant demand reducing vacancies and boosting rental rates. Market-wide gross leasing activity surpassed the 10-year average.

However, on the sales front, a shortage of sellers was evident, but those willing to sell adjusted listing prices and saw successful transactions. Liquidity challenges stemming from lender and equity issues, as well as federal interest rate fluctuations, hindered sales volume.

Positive developments did emerge, such as the opening of new restaurants and dining options as well as retail stores in several mixed-use buildings, including Shake Shack’s third Portland location at Bridgeport Village Mall. As the economy continues to face various headwinds, such as higher oil prices, inflation and the resumption of student loan payments, the retail sector should see more stabilization in H1 2024.