Portland Retail Market Report

Household formation prompts retailer expansions. Portland's retail sector is strongly rebounding, buoyed by record-level household creation. The metro's relative affordability — with the lowest average multifamily rent among major West Coast markets — has helped stimulate the formation of 20,000 new households during the past year ending in June, the metro's largest 12-month addition on record. In turn, retail leasing activity has notably improved, with vendors absorbing a net of 940,000 square feet over the past year, the highest four-quarter volume since the yearlong span ending in September 2018. The Southeast submarket and Clark County have accounted for a significant share of these commitments, as retailers anticipate increases in local midweek foot traffic, after both areas recently posted 150-plus-basis-point declines in office vacancy.