The second quarter has come to a close with a vacancy rate of 3.7%. Net absorption totaled a positive 713,455 square feet and vacant sublease space increased. Rental rates increased to $8.16
and nine buildings were delivered to the market. Those nine buildings totaled 552,369 square feet and 4,846,902 square feet remain under construction at the end of this quarter.
Absorption & Deliveries
The Portland Industrial market absorbed positive 713,455 square feet, largely due to several tenants moving into large spaces throughout the quarter.
Tenants that moved out of large blocks of space include: Stanley Hydraulic Tools (123,000 SF) and Dolan Co. (76,315 SF).
Tenants that moved into large blocks of space include: Laticrete International (205,000 SF), Hawthorne Hydroponics (124,768 SF) and Eye Level (122,747 SF).
A net absorption of positive 122,425 square feet was recorded for the Flex building market.
The vacancy rate slightly decreased from the first quarter, but still remains much higher than last year’s 3.0% vacancy in the third quarter.
Flex projects’ vacancy rate is the lowest it has been in the past year, at 5.7%.
The vacancy rate for Warehouse projects remained unchanged since fi rst quarter at 3.5%.
Deliveries & Construction
Portland continues its construction boom by completing nine buildings this quarter, totaling 552,369 square feet. First quarter 2018 delivered 1,745,378 square feet and fourth quarter 2017
delivered 1,473,947 square feet.
Some of the largest projects under construction are the Mill Creek Corporate Center – Phase 1 (1,018,020 SF) and Amazon (918,400 SF), both 100% pre-leased.
1,846,902 square feet were still under construction at the end of the second quarter.
Portland quoted office rental rates were on average 0.6% higher than the first quarter with an asking rate of $8.16 per square foot.
The Flex sector averaged a quoted rental rate of $12.61 per square foot and Warehouse rates remained at $7.42 per square foot.
Posted in: Market Reports