Industrial Market Report | Q3 2019 The Industrial market in Portland closed out the third quarter 2019 with a vacancy rate of 4.6%. Net absorption totaled a negative (117,073) square feet and vacant sublease space decreased. Rental rates increased from $8.84 in the previous quarter to $9.21 at the end of the third quarter. A total of 5,800 square feet were delivered to the market and 4,318,696 square feet still remain under construction at the end of the quarter. The overall Portland Industrial market absorbed negative (117,073) square feet, compared to negative 31,616 square feet in the third quarter 2019. A net absorption of negative (15,783) square feet was recorded for the flex building market for the third quarter 2019, which compared to positive 19,877 square feet from the previous quarter. The warehouse building market recorded net absorption of negative (99,822) square feet in the third quarter 2019, compared to negative (331,429) square feet in the second quarter 2019. The Portland area vacancy rate incresed to 4.6% at the close of the third quarter 2019, up from 4.2% at the end of the second quarer 2019. The vacancy rate for flex projects increased slightly from the previous quarter, from 7.3% to 7.4%. The vacancy rate for warehouse projects in third quarter 2019 was 5.2%, up from 4.7% in the previous quarter. PORTLAND MARKET SNAPSHOT VACANCY OVERVIEW ABSORPTION & DELIVERIES Vacancy Rates by Building Type Years 2014 - 2019 Absorption & Deliveries 2013 - 2019 900 SW 5TH AVENUE, 17TH FLOOR | PORTLAND, OR 97204 | 503.223.3171 | WWW.NORRIS-STEVENS.COM VACANCY RENTAL RATE CONSTRUCTION ABSORPTION 4.6% 4,318,696 SF $9.21 (117,073) SF Source: CoStar Property Source: CoStar Property Net Absorption Deliveries -1.0 -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2019 Q3 2019 Q1 2018 Q3 2018 Q1 2017 Q3 2017 Q1 2016 Q3 10% 8% 6% 4% 2% 0% 2014 2015 2016 2017 2018 2019 Flex Warehouse Overall
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Industrial Market Report | Q3 2019 · Industrial Market Report | Q3 2019 The Industrial market in Portland closed out the third quarter 2019 with a vacancy rate of 4.6%. Net absorption
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Industrial Market Report | Q3 2019
The Industrial market in Portland closed out the third quarter 2019 with a vacancy rate of 4.6%. Net absorption totaled a negative (117,073) square feet and vacant sublease space decreased. Rental rates increased from $8.84 in the previous quarter to $9.21 at the end of the third quarter. A total of 5,800 square feet were delivered to the market and 4,318,696 square feet still remain under construction at the end of the quarter.
The overall Portland Industrial market absorbed negative (117,073) square feet, compared to negative 31,616 square feet in the third quarter 2019.A net absorption of negative (15,783) square feet was recorded for the flex building market for the third quarter 2019, which compared to positive 19,877 square feet from the previous quarter.The warehouse building market recorded net absorption of negative (99,822) square feet in the third quarter 2019, compared to negative (331,429) square feet in the second quarter 2019.
The Portland area vacancy rate incresed to 4.6% at the close of the third quarter 2019, up from 4.2% at the end of the second quarer 2019.The vacancy rate for flex projects increased slightly from the previous quarter, from 7.3% to 7.4%.The vacancy rate for warehouse projects in third quarter 2019 was 5.2%, up from 4.7% in the previous quarter.
DELIVERIES AND CONSTRUCTION RENTAL RATESPortland quoted industrial rental rates increased in the third quarter 2019 to an average of $9.21 per square foot, up from $8.84 per square foot from the previous quarter.The flex sector average quoted rental rates also increased, ending the quarter at $13.89 per square foot and the warehouse average quoted rental rate stood at $8.45 per square foot.
During the third quarter 2019, the Portland market slowed quite a bit from the previous quarter, delivering a modest 5,800 square feet, all in the warehouse sector. There were 4,318,696 square feet of industrial space under construction at the end of the third quarter 2019. Some of the largest projects underway are expansion projects, including the Intel expansion project at 1,500,000 square feet, and the UNFI expansion, at 577,000 square feet.
MarketUnder Construction Inventory Average Bldg Size
# Bldgs Total RBA Preleased SF Preleased % All Existing U/C
Construction Activity | Markets Ranked UNDER CONSTRUCTION RBA
Source: CoStar Property
Source: CoStar Property
Source: CoStar Property
For detailed information regarding this report, and to discuss how Norris & Stevens can assist with your real estate needs, please contact us at (503) 223-3171 or visit us at www.norris-stevens.com.