Portland’s industrial vacancy set to remain low
Looking at 2018 from purely a numbers perspective, Portland is going to experience the most construction in 20 years and the most absorption of this current cycle.
- Looking at 2018 from purely a numbers perspective, Portland is going to experience the most construction in 20 years and the most absorption of this current cycle. But if you dig into those numbers a little bit, you’ll find that 2018 is a bit of an anomaly in that we had the 3 of the largest build-to-suit projects in recent memory.
- If you strip out those 3 large build-to-suit projects then what you’ll find is that Portland is in fact having a very average year. We’re on track to deliver 2 million square feet of speculative development in 2018 with another 1.5 million square feet delivering in 2019. With average organic absorption (that is absorption stripping out build-to-suit and owner-occupied projects) running at about 1.5-1.75 million square feet a year, we should see this new development absorbed by the end of 2019.
- This disciplined level of speculative development and healthy rate of absorption will help keep Portland’s vacancy rate steady at around 4 percent through 2019 going into 2020.
Source: JLL Research