Portland Industrial Completions Slow But Land Bidding Wars Likely
The Portland economy is slowly bouncing back in 2021, as the state fully reopened on June 30. As local businesses reopen, there is optimism that strong consumer spending will drive the Portland economy forward in 2021, according to a recent Kidder Mathews report.
As for industrial market drivers, nearly 2.59 million square feet was leased in second quarter 2021, a 37 percent increase year-over-year and totaling a year-to-date lease volume of 4.31 million square feet. Asking lease rates remained firm in the Portland industrial market, standing at an average of $0.70 per-square-foot triple net.
In the second quarter, industrial completions slowed with 119,400 square feet delivering in the market. Composites One delivered 72,000 square feet in the Orchards submarket, while 8060 NE Walker Rd. Building C (part of the Robinson Business Park) added 36,000 square feet to the Sunset Corridor/Hillsboro submarket.
As for the near-term outlook, industrial land remains competitive among users and developers. Owner-user activity is being driven by attractive financing and overall lack of available buildings for purchase.
With demand expected to outpace supply in the next 24 months, developable land will generate a bidding war. Developers are actively pursuing significant development projects in second-tier markets outside of Portland including Vancouver, Salem and Canby due to lack of supply in the core metro area, says the report.
Lisa Brown has decades of experience in corporate communications and marketing management with organizations including Coldwell Banker Residential, Grubb & Ellis, Marcus & Millichap, NAIOP, SIOR and ALM.
In those positions, she worked in conjunction with chief executive officers and chief marketing officers to create corporate messaging, cohesive branding standards, strategic marketing plans and thought pieces. Brown is a frequent speaker at industry events and an editing adjunct professor for an online course. She has a master’s degree in mass communications from San Jose State University.