Portland Office Market
Net absorption for the second quarter of 2023 totaled negative 327,142 square feet as vacancies rise across all asset classes in Portland. The CBD remains the hardest-hit submarket, recording negative 186,217 square feet of absorption despite multiple notable companies signing leases during the quarter. The construction pipeline for office properties in Portland has nearly been exhausted following the completion of Block 216 and The Offices at 11W. Currently, only one project is being tracked for delivery for the remainder of the 2023 calendar year. ‒Vacancy has grown to 19.6% as demand fails to keep pace with the abundance of available space returning to the market. Rent growth has also accelerated due to the introduction of several best-in-class buildings, resulting in market-wide asking rents reaching $31.95/SF.
Download Portland Office Market Report 2Q23Portland Industrial Market
Absorption in the second quarter of 2023 totaled 240,236 square feet, bringing total year to date absorption for the Portland market to 468,482 square feet. Absorption numbers are far behind 2022 totals, but vacancy has remained steady at 2.8% despite a deceleration in activity. The construction pipeline remains healthy at 5.7 million square feet currently being tracked. Of this number, 87.3% of projects are in the warehouse/distribution category, and no R&D/Flex developments are currently being constructed in Portland as inventory still outweighs demand in that sector. Rents have edged slightly lower market-wide in the second quarter of 2023. The average asking rate dropped to $10.89/SF which represents a $0.25/SF drop from the 2022 high of $11.14/SF.
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