Portland Industrial Figures Q2 2022

July 15, 2022

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‒ Industrial rent growth continues to outpace other asset types. Market experts reported shell rents in the $0.70-$0.80 per sq. ft. triple net (NNN) range, while seeing some quotes for new construction up to $0.85 per sq. ft. NNN.

‒ Nearly 721K sq. ft. of net absorption was posted in Q2 2022, bringing the year-to-date figure to roughly 2.3 million sq. ft.

‒ Strong tenant demand has contributed to continued vacancy rate compression down 120 basis points (bps) year-over-year (YoY) at 2.9% in Q2 2022.

‒ Available space ticked up slightly from the prior quarter. However, continued the more established trend downward, with total availability falling 170 bps YoY to 3.8%.

‒ Industrial development remained active in Q2 2022 with 2.1 million sq. ft. underway, a 28.9% increase from the previous year. Four projects delivered in Q2 2022 totaling nearly 920,000 sq. ft., with 84.8% of that volume being pre-leased.