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Portland Office Figures Q1 2023

Changing Tenant Footprints An Emerging Trend in Portland's Evolving Office Market

May 7, 2023 5 Minute Read

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‒The Portland metro area’s overall vacancy rate grew to 21.5% in Q1 2023, a 120-basis point (bps) increase year-over-year (YOY).
‒In Q1 2023, sublease availability across the overall office market increased to 2.7 million sq. ft., up 10.1% from the previous quarter and 87.3% YOY.
‒43% of Portland’s active office development pipeline is within a three-block radius Downtown. The Offices at 11W (117,285 sq. ft.) and Block 216 (158,464 sq. ft.), both in the CBD, are on schedule to deliver this Spring. Block 216 has not yet seen any pre-leasing. However, 11W recently secured a lease with a National law firm for the full 6th and 7th floors.
‒Construction is also underway at Terminal 1 on the Vancouver Waterfront. ZoomInfo has the 366,000 sq. ft. office building pre-leased and plans to occupy in 2025.
‒In Q1 2023, the average direct asking lease rate across the metro area was $32.45 per sq. ft. full-service gross (FSG), remaining relatively flat quarter-over-quarter (QOQ). However, measured from the same period in 2022, overall direct asking rates have increased 3.4%.
‒The Suburban average asking rental rate was $29.47 per sq. ft. FSG, a 1.5% increase QOQ and a 7.6% increase YOY.
‒In Q1 2023, the Downtown average asking rental rate was $34.26 per sq. ft. FSG, a 1.7% increase YOY.