Portland Industrial Market Report

4th Quarter 2021

Posted In — Market Research | Market Report


ASKING LEASE RATES 4.4% year-over-year (YOY) from $0.69/SF NNN in 2020 to $0.72/SF NNN for 2021.

LEASING ACTIVITY climbed 15.6% YOY from 9.9 million SF in 2020 to 11.4 million SF in 2021. The most active submarket clusters for the year were Southeast and I-5 Corridor with 35.8 million SF and 29.4 million SF respectively.

DIRECT VACANCY RATES decreased 22.4% from 4.0% in 2020 to 3.2% in 2021.

TOTAL NET ABSORPTION for 2021 was 3.6 million SF, 2.3 million of which occurred in 4Q 2021.

SALES VOLUME dropped 24.2% YOY from 10.4 million SF in 2020 to 7.9 million SF in 2021.

THERE IS CURRENTLY 4.9 million SF under construction, while 1.8 million SF was completed in 2021. The Bridgepoint I-5 development delivered 677,568 SF to the Airport Way submarket. Portside Industrial Park added 192,960 SF to the CBD/West Vancouver submarket.


MANUFACTURING JOBS for the Portland-Vancouver-Hillsboro MSA gained 2.9% YOY to 123,100 jobs.

TRANSPORTATION and warehousing jobs also rose 4.1% YOY to 231,200 jobs.


THE PORTLAND INDUSTRIAL MARKET continues to hum along as the economy recovers during 2021. Demand sparked by e-commerce and logistics companies drive vacancies downwards and stoke increases in asking lease rates. There are currently 4.9 million SF under construction to help meet these requirements.

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