Skip to main content

Scroll Down

Market Report

Portland Retail Market Report

2024 Investment Forecast

While Portland’s Retail Sector Transitions this Year,
A More Diverse Investor Pool is Expected to Develop

Population growth and well-placed supply help metro navigate flux. Net migration into Portland is expected to grow to an eight-year high of 15,000 in 2024. This influx should shore up space demand from retailers, after a wave of relinquishment spiked vacancy to 4.2 percent last year. While the addition of 400,000 square feet in 2024 will drive vacancy up, below-typical rates in areas where deliveries are concentrated suggest that the long-term downside risk from new supply is minimal. Nearly 85 percent of deliveries in 2024 are slated for Clark County and the Westside, which both closed out 2023 with local vacancy rates at least 70 basis points below their long-term means. Household growth in both of these submarkets is also expected to far-exceed Portland proper, aiding consumer spending and tenant demand for space. Construction is fortunately nominal in the CBD and Lloyd District, where a slow-moving office recovery has challenged retailer performance. Elevated retail vacancies here continue to weigh on marketwide property metrics, with the two areas combining for 15 percent of Portland’s vacant stock volume, despite comprising less than eight percent of total inventory. 

Related Research

Back to top