Archive for July, 2009
Multifamily vacancy continued creeping upward to 5.03% during Second Quarter. Vacancy a year ago was 3.46%, for comparison. Vacancy in SE Portland increased considerably to 7.37%, and SW Portland vacancy also saw a large jump to 5.70%. Vacancy in both the Gresham/Troutdale and Lake Oswego/ West Linn submarkets decreased, remaining below 4%. Rents stayed essentially flat, hovering around where they were last quarter. More >
Retail vacancy rose slightly to 7.1% during Second Quarter, with 240,321 sf of newly vacant space. Central City vacancy increased by a percentage point to 9.2%, with a large portion of this area’s negative 30,000 sf of absorption in the Close-In NW area. The suburban submarkets saw significant absorption, both positive and negative, in larger spaces. Vacancy in the 122nd/Gresham submarket rose nearly a percentage point to 8.4%, partly due to Joe’s Sports & Outdoors vacating 55,120 sf at Gresham Town Fair. But, the good news is that Grocery Outlet opened a 20,020 sf store at Sandy Marketplace on Highway 26 in this submarket in May.
Southwest retail vacancy rose nearly one percentage point to 7.5% with 88,722 sf newly vacant, due in large part to the more than 20,000 sf Zupan’s at Appleway Corner closing, and the departure of Linens-N-Things from Cascade Plaza Shopping Center. Retail vacancy in Vancouver also increased to 8.7%, with 91,000 sf newly available at Vancouver Plaza. More >
Industrial vacancy increased nearly a percentage point during Second Quarter to 13.87%, with 515,518 sf coming back on the market. Vacancy in North/Northeast increased substantially to 17.51%. Although there was one major lease, Ernest Packaging took 62,150 sf at PDX Corporate Center South. Vacancy in Vancouver also increased substantially, to 12.30%. Several tenants left Columbia Business Center. Vacancy in Southeast decreased by a percentage point to 10.17%, largely due to Leverage 2 Productions leasing 62,765 sf in two buildings at Clackamas Commons Phase II. More >
NAI NBS Second Quarter Office Report: Central City Vacancy Staying Stable, Suburban and Vancouver Vacancy Rising
Central City office vacancy stayed essentially stable from First quarter at 10.33%, with positive absorption of 47,803 sf. Class A space in the Central Business District remained tight at 6.25% vacancy, with considerable movement in spaces under 10,000 sf. No new available space will deliver in the CBD until Shorenstein’s First & Main finishes construction in March 2010. In early April, TMT Development halted work on Park Avenue West, a 315,000 sf Class A tower scheduled to open in 2011 with anchor tenant Stoel Rives, because financing dried up. The company plans to take out the top 10 stories of condominiums from the plans and is targeting to begin construction again in early 2010. We are continuing to see tenants interested in moving to the urban core from the suburbs – for instance, SAIF moved into 34,000 sf at Crown Plaza at 1500 SW First Ave in April. Tenants are also often seeking to renew leases rather than relocate, and ADP announced that it would stay in 115,180 sf at ADP Plaza for seven more years. More >