Portland’s South-end office market repositions itself, driving rent growth and asset sales
The South-end is a micromarket within the CBD with just under 5.0 million s.f. of leasable office space.
March 10, 2020
- Traditionally, it’s the area where Portland’s financial and legal sectors tended to concentrate but more recently tech has established a sizeable footprint with over 335,000 square feet of leases signed in the past 5 years.
- A wave of development and repositionings has driven rent growth, with average asking rents growing by 40.1% since 2016 to $39.71 FSG compared to 19.1% for the rest of the CBD.
- The micromarket is the area of choice for institutional investors with almost $1B in sales over the past 5 years. The largest sales have been Wells Fargo Center for $188M, Pacwest Center for $170M and Park Square Campus for $96.5M.
- 2020 is expected to be another banner year for office sales, with Broadway Tower finalizing its sale for $132.3M at around $770 per square foot – a new high water mark for office sales in Portland. A number of high profile buildings are still currently for sale in the neighborhood including KOIN Tower - expected to sell well above $100M.
Source: JLL Research