Here’s a brief summary of our Year End Review/Fourth Quarter Report on the Portland Commercial Real Estate Market. None too shocking to anyone, 2009 finished out as one of the weakest years for activity on record, in particular for the retail sector. Five things to consider:
- The overall office vacancy rate is at 11.3%, considerably lower than the national average which hovers around 16%.
- The downtown (CBD) vacancy should level off in coming months as GSA takes down large chunks of space (nearly 300,000 SF) making the options for larger tenants few and far between.
- The retail sector is still experiencing fall out as national chains struggle to stay above red. Smaller, local boutiques and some franchises comprise what activity exists, taking advantage of great space at record low rates.
- With the announcement of yet another solar firm setting up a manufacturing facility in the area (Gresham), alternative energy continues to keep industrial activity afloat, but slower over a three year period.
- There is no Transformers Movie Sequel expected in 2010, thank you Hollywood!
If you would like a complete copy of the report, please contact us.
Office Lease Comps – Fourth Quarter 2009
Submarket Class SF Mths Rate Abated Rent
Kruse Way A 22,120 90 $23.00 7 mths
CBD B 11,600 52 $18.00 4 mths
Eastside A 6,900 81 $21.75 3 mths
Old Town Historic 6,400 60 $15.25 0 mths
Sunset Cor. A 4,620 66 $18.00 9 mths
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