MARKET DRIVERS
CLOSE TO 2.59 million SF was leased in Q2 2021, a 37% increase YOY and totaling a YTD lease volume of 4.31 million SF.
ASKING lease rates remained firm in the Portland industrial market, standing at an average of $0.70/SF NNN.
A SLOWDOWN of industrial completions was seen in the second quarter, with 119,400 SF of industrial space delivering in the market. Composites One delivered 72,000 SF in the Orchards submarket, while 8060 NE Walker Rd. – Building C (part of the Robinson Business Park) added 36,000 SF to the Sunset Corridor/Hillsboro submarket.
ECONOMIC OVERVIEW
THE PORTLAND economy is slowly bouncing back in 2021, as the state of Oregon fully reopened on June 30. As local businesses reopen, there is optimism that strong consumer spending will drive the Portland economy forward in 2021.
NEAR-TERM OUTLOOK
INDUSTRIAL LAND remains competitive among users and developers. With demand expected to outpace supply over the next 24 months, developable land will generate a bidding war.
OWNER-USER activity is being driven by attractive financing and overall lack of available buildings to purchase.
DEVELOPERS are actively pursuing significant development projects in second tier markets outside of Portland including Vancouver, Salem and Canby due to lack of supply in the core Metro area.