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Changing Portland Skyline Reflects Dramatic Economic Growth
Portland has evolved over the past decade into a strong U.S. market, supported by a booming economy, healthy job growth and robust technology company expansion. The Rose City has emerged as a highly-desired metro to live, work and play.
The population of the Portland metro area grew by more than 275,000 people, up 12.4% between January 2010 and December 2019. Meanwhile, 239,000 new jobs were created, an increase of 24.4%. The area has gotten wealthier too, with median income of $79,761, up 46.3% during this same time, representing one of the largest increases of any major metro area in the U.S.
Research by Cushman & Wakefield shows how that dramatic growth has impacted the CRE sector. In total, more than 85 million square feet of new commercial development has been delivered to the Portland market over the last 10 years. Today, there are 30 cranes operating just within the city limits, not including the surrounding metro areas.
Cushman & Wakefield’s Samuel Hatcher says, “It’s astonishing how much has been built or is under construction, and by no means is this construction cycle near over. There is still 16.1 million square feet under construction across all product types with very transformative buildings, such as Block 216 at 10th & Alder, yet to be delivered.”
But there are shifts taking place in the market, too. Inclusionary housing and state and local new housing policy has slowed down interest in multifamily development. New office development in the CBD has caused vacancy to increase from 10.2% two years ago to 11.8%, as of Q4 2019. This year, for the first time in a long time, new industrial supply has outpaced demand. Meanwhile, retail, while relatively stable, continues to face pressure from e-commerce, note researchers at Cushman & Wakefield.
For comments, questions or concerns, please contact Dennis Kaiser
- ◦Development
