Seattle & Northwest + Portland + Industrial | April 18, 2023

Report: Portland Industrial Market Remains Strong Despite Turbulence

Industrial real estate fundamentals in Portland, OR continue to show strength despite the current economic headwinds. A new report from Kidder Mathews indicates that direct vacancy rates in the first quarter of 2023 dropped 50 basis points from Q1 of 2022, and now stands at 2.6%. Meanwhile, asking lease rates jumped 14.3% year-over-year to a region average of $0.85-per-square-foot NNN.

The sector is seeing some slowing due to the turbulence, however, as leasing activity decreased to 1.41 million square feet in Q1 of 2023, a 56.3% drop compared to a year ago and there has been a slight increase in sublease space which has led to a 60 bps increase in total availability quarter-over-quarter to 5.4%.

Sales volume in Q1 totaled 1.4 million square feet, an annual drop of 21.5% while only 40,088 square feet of space was delivered. Despite the slight downturn however, Kidder Mathews’ outlook for the Portland industrial market remains strong.

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Kidder Mathews Research

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.

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