The retail market in Portland did not experience much change during the second quarter. With the vacancy rate at 3.2%, net absorption was a positive 83,327 square feet and vacant sublease space
increased by 29,737 square feet. There was a slight increase in quoted rental rates, ending at $17.35 per square foot per year. Seven buildings were delivered to the market and 1,129,274 square feet are still under construction.
While the vacancy rate hasn’t changed since the first quarter, it has decreased over the past four quarters.
Vacant sublease space has gone up over the past four quarters. In the third quarter of 2017, there was 184,347 square feet of vacant sublease space. At the end of the second quarter 2018, the
market had 240,386 square feet of vacant space.
Absorption & Deliveries
With positive 83,327 square feet absorbed, this quarter ended down compared to the first quarter, which had positive 303,072 square feet of net absorption.
Sears moved out of 111,645 square feet of space at Lloyd Center and Kmart moved out of 96,805 square feet at 2470 Mission Street.
Deliveries & Construction
During this quarter, 55,011 total square feet were delivered to market in seven buildings. 357,363 square feet in total have been built in Portland over the past four quarters.
At the end of the quarter, 1,129,274 square feet remain under construction.
In the Portland area at the end of the quarter, there is 189,755,970 square feet of total retail inventory in 18,309 buildings and 1,167 centers.
Since the previous quarters, average quoted rental rates have increased. Over the past four quarters, quoted rental rates have increased 3.52%, with $16.74 reported in third quarter 2017. The rates then steadily increased over the next few quarters, up to 17.25 and $17.31. The second quarter 2018 ended with average quoted rental rates at $17.35.
Posted in: Market Reports