Portland Office Figures Q4 2022

‒The Portland metro area’s overall vacancy rate grew to 21.4%, an 80 basis point (bps) increase year-over-year (YOY).

‒In Q4 2022, sublease availability across the overall office market increased to 2.5 million sq. ft., up 36.2% from the previous quarter and 96.3% YOY.

‒Construction has begun at Terminal 1 in Vancouver. ZoomInfo has the 366,000 sq. ft. office building pre-leased and plans to move in in 2025. Two other notable projects in Portland’s office development pipeline, The Offices at 11W (117,285 sq. ft.) and Block 216 (158,464 sq. ft.), both in the CBD, are on target for their expected delivery dates.

‒The average direct asking lease rate in the metro area was $32.43 per sq. ft. full-service gross (FSG), for a 0.6% increase quarter-over-quarter (QOQ) and a 3.2% increase YOY.

‒The Q4 Suburban average asking rental rate was $28.97 per sq. ft. FSG, a 1.9% increase QOQ and a 6.2% increase YOY.

‒The Q4 Downtown average asking rental rate was $34.52 per sq. ft. FSG, a 0.2% increase QOQ and a 2.3% increase YOY.