Portland Retail Figures Q1 2023

The commercial real estate market in Portland has continued to be a mixed bag; while the suburbs are witnessing strong growth, the downtown area continues to flounder. Despite this disparity, the overall market is seeing an increase in rents and strength in occupancy, indicating an overall positive trend for the asset class.

A collection of relatively small new vacancies added up to roughly negative 127k square feet (sq. ft.) across metro shopping centers. Of those, 30,000 sq. ft. at Columbia Gorge Outlet Center in Troutdale and 25,750 sq. ft. at the Columbia Tech Center in Clark County were the largest new vacancies. Given the amount of demand for retail space, strong preleasing numbers in the suburbs, and little expected construction, CBRE leasing professionals consider negative absorption to provide an opening for market-rate-paying tenants to come in rather than a worrying market trend.

Sales volume in the Portland metro area’s shopping centers hit just over $100M in Q1, a roughly 115% increase quarter over quarter and above the 5-year average of $74M.

As they continue to close stores across the country, Bed Bath & Beyond is slated to vacate over 150,000 sq. ft. of retail space in the Portland metro area and nearly 300,000 sq. ft. in the state of Oregon.

The proposed Senate Bill 340 changes to the Oregon criminal code could have an impact on the retail CRE market. The bill, if passed, would increase penalties for certain crimes, including theft.