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.