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Market Report

Portland Office Investment Forecast

2020 Office

Portland Office Market Offers Mix of Traditional Stability and Tech-Fueled Growth

Divergent trends between suburban and CBD office space define the 2020 outlook. Portland suburban office market is emblematic of slower moving, traditional office space. Vacancy is well below 8 percent, supporting much healthier rent growth than found in the CBD. Nonetheless, leasing activity tends to move at a slower pace as tenants have shorter time horizons and occupy significantly smaller footprints. The average rent for suburban space is approximately 30 percent lower than those in the CBD, providing tenants facing sticker shock at lease renewals an alternative to core assets. In fact, the average rent in the CBD soared 42 percent since 2012, when many expiring leases were inked. The metro’s core office market is akin to some of the white-hot tech office districts in other West Coast markets. Creative space draws high-profile tenants, including Google and Amazon, though ancillary and supportive firms have been slow to backfill smaller footprints, keeping vacancy elevated and rent growth stable.

 

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