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Report: Portland Industrial Market Remains Strong Despite Slow Start
Industrial real estate fundamentals in Portland, Oregon, continue to show strength despite the current economic headwinds. A new report from Kidder Mathews indicates that direct vacancy rates have increased by 130 bps YOY to 3.9%. Asking lease rates have also steadily increased to $0.88 from $0.86-per-sqaure-foot NNN to since Q1 of 2023.
The sector has seen a sluggish start to 2024, with leasing activity decreasing 40% YOY from 1.9 million square feet in Q1 of 2023 to 1.1 million square feet in Q1 of 2024. This is the lowest recorded quarter in the past two decades.
Despite the slow kickoff to the year, the uncharacteristically slow start to the year is not indicative of a trend per Kidder. Transactions like the acquisition of the $67 million 217 Distribution Center, a multi-tenant industrial park in metro Portland, show the area’s continued demand for industrial product.
