Report: Portland Industrial Market Sees Record Low Vacancy
Tenant demand in Portland, OR for industrial space continued to drive positive absorption and low vacancy rates in the fourth quarter of 2022, according to a new report from CBRE. In addition, average monthly asking rents for Class A space jumped to $0.80 per square foot, and is expected to keep climbing.
Portland’s positive absorption rate in Q4 was nearly 1.4 million square feet and totaled 5.6 million square feet for the year, while industrial vacancy fell to a record low of 2.3%. The largest lease of the quarter was Thermal Supply’s 170,000 square feet at Vancouver Logistics.
The industrial development pipeline in Q4 consists of 2.5 million square feet, all of which is expected to deliver through 2023. One project was completed in the fourth quarter, the 285,000-square-foot Building E at Prologis Meadows. Meanwhile, investment numbers declined with rising interest rates, as sales volume was $748 million in 2022, compared to $1.3 billion in 2021.