NAI NBS Releases First Quarter Reports on Portland Commercial Real Estate

The Portland metro area commercial real estate market showed some positive signs during First Quarter, according to NAI Norris, Beggs & Simpson’s reports. Here are some key points:

  • Central City office vacancy rose slightly to 13.41%, with negative absorption of 147,391 sf. Though office sales remained slow overall, Central City saw a few significant sales.
  • First Quarter was slow for suburban office leasing, with vacancy rising slightly to 22.41% and negative absorption of 61,838 sf. Vancouver office vacancy rose more than half a percentage point to 16.02%, with slight negative absorption.
  • Industrial vacancy rose slightly to 14.55%, with 34,168 sf absorbed. Despite rising vacancy, there was some significant leasing activity in North/Northeast.
  • Flex vacancy dropped slightly to 17.41%, with a flurry of activity in Southwest Sunset.
  • Overall retail vacancy rose less than half a percentage point to 6.68%, with negative absorption of 31,705 sf. Some major closures included the Glisan Street Station Target and two former Bally’s gyms, but downtown saw some very positive activity, including Target’s 91,555 sf lease at The Galleria.
  • Multifamily vacancy was flat at 2.87%, with moderate growth in rental rates. The big story here is the wealth of apartment construction occurring around the metro area, and particularly in close-in neighborhoods.

Click here for our full report, which includes office, retail, industrial and multifamily, as well as an economic overview.