Our local reps in Portland just came out with an update on Portland Office Space. All in all, it shows a very healthy market with a low vacancy rate, but one in which tenants will need the assistance in finding and negotiating for office space.
Here are the key points of their recent report:
- The marketplace for Portland office properties grew during 2016, with over 1 million square feet of new and adapted supply came online amid institutional investors initiating or increasing ownership stakes.
- Office development set records in 2016 and remains very active heading into 2017. Pre-leasing activity has become more common and the vacancy rate remained stable in the 8% range.
- Company’s appetite for office space in 2018 could be affected in the event of a broader downward business and economic cycles, but our region’s relative advantages should temper these trends.
- The Portland Office space market strengths include a diversified economy with lower business, commercial real estate, and living costs relative to neighboring West Coast cities, and a well-educated and well-paid workforce.
- These lower costs attract technology companies and their employees to Portland, where venture capital funding set a 5-year record in 2015 at $283M. Start-ups are an important part of the tenant mix due to their high growth potential.
- The Oregon Employment Department recently reported the Portland metro area’s GDP grew 4.6% in 2015, 10th-fastest among the largest 100 U.S. metros. The Professional & Business Services category was the second-largest contributor to this growth, and is a key user of office space.
- The current vacancy rate stands at 8.6% after absorption of over 121,000 square feet in Q4 2016.
- The average Class A rent is $29.33
If you would like more information or need office space in Portland, contact our local rep. We will be happy to answer questions or help you find your next office space. All at no cost to you for our services.