Portland Industrial Figures Q4 2022

‒Portland’s industrial market posted nearly 1.4 million sq. ft. of positive absorption in Q4 2022, bringing the year-to-date (YTD) figure to roughly 5.6 million sq. ft.

‒Three leases over 100,000 sq. ft. were signed in Q4 2022, highlighted by Thermal Supply’s 170,089-sq. ft. lease at Vancouver Logistics in Clark County and the 139,495-sq. ft. Chef’s Warehouse lease at Northwest Logistics Park.

‒The industrial development pipeline in Q4 2022 totaled 2.5 million sq. ft. all of which is expected to deliver through the end of 2023. One project delivered in Q4 2022; Prologis Meadows – Bldg. E (285,000 sq. ft.).

‒Healthy tenant demand has contributed to sustained market-wide vacancy rate compression, down 80 basis points (bps) year-over-year (YoY) to 2.3% in Q4 2022.

‒Overall Class A average asking industrial warehouse shell rates in Q4 2022 are between $0.75 - $0.80 per sq. ft. on a monthly triple net (NNN) basis. Investors remain cautious yet interested, as rental rate growth is expected to continue in 2023.