Portland Industrial Market Report
Supply Chain Constraints, In-Migration Bolster
Need for Additional Industrial Space
Increased port activity bodes well for future demand. Entering the second quarter, metrowide vacancy was roughly 20 basis points below the pre-pandemic level, and the rate is projected to fall even further by year-end. Supply chain limitations are compelling companies to increase their domestic shipping capabilities, which, in turn, has benefited the local industrial sector. In response, the Port of Portland added a weekly container service from MSC in September 2021 to handle increased container traffic, due to logjams at other larger West Coast ports. Local officials have also committed resources to ramp up port-related marketing in an effort to attract more shipping partners moving forward. Additionally, robust population growth is expected to continue in the near term, heightening industrial user demand for properties well suited for last-mile operations.