Friday, July 31, 2009

Second Quarter 2009 Reports for Portland Metro Area Show Recession's Impact

Second Quarter 2009 quarterly reports for office, industrial, retail and multifamily commercial real estate in Portland, Oregon, as well as the general economy, are up on our Web site.

While central city office vacancy remained stable from the previous quarter at 10.33%, with 47,803 sf absorbed, vacancy in the suburban markets increased nearly two percentage points to 19.06%, with -183,415 sf absorbed. Vancouver office vacancy also rose, to 17.71%.

Industrial vacancy rose to 13.87%, with -515,518 sf absorbed. Industrial sales have slowed considerably, but SEH purchased the Hewlett-Packard campus in Vancouver for $55 million in late June.

Vacancy in the retail market rose to 7.1%, and the negative absorption of 240,321 sf occurred in some larger spaces, such as Joe’s Sports & Outdoors vacating 55,120 sf at Gresham Town Fair. Construction has slowed, but work continues on the Cascade Station Target, expected to deliver this November.

Multifamily vacancy rose slightly to 5.03%, as the poor economy has caused renters to double up or move in with family. Rental rates remained flat, and landlords are increasingly using incentives to attract potential tenants.

The full reports can be found here.

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