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Economic Headwinds Slowing Portland Industrial Market

Economic Headwinds Slowing Portland Industrial Market

Leasing activity for industrial properties in the Portland, OR market experienced a substantial decrease in the 2nd quarter, falling 66% year-over-year, according to a new report from Kidder Mathews. Despite the headwinds however, asking lease rates continue to rise, up 11.4% annually to $0.78 a square foot.

Vacancy rates indicate industrial demand is still there, as 2nd-quarter numbers show a 23.8% decrease year-over-year to 3.1%. The most active submarkets for leasing were the Northeast and I-5 Corridor. Sales volume declined markedly, with a 66% drop from 2.87 million square feet in Q2 2021 to 978,000 square feet in Q2 2022.

The region’s labor situation remains pretty solid as manufacturing jobs jumped and the unemployment rate decreased last quarter. Kidder concludes that while rising interest rates and inflation are definite obstacles, the industrial market is more insulated than others due to continued high demand from owner-users, logistics and manufacturing firms.


Inside The Story

About Mark Nieto

Mark comes to ConnectCRE with an extensive background as a business and news reporter in San Francisco radio, as well as 35 years as a traffic reporter on several stations including KGO, KNBR, KCBS and KFRC. As a business reporter, Mark covered the tech world in Silicon Valley where he became familiar with real estate transactions in the hot Bay Area marketplace. He attended San Jose State University with a BA in Radio and TV Broadcasting and currently resides in the Lake Tahoe area where he gets to frequently enjoy all of his favorite activities: Golfing, Fishing, Hiking and Skiing.

  • ◦Economy