The Rose City has the third-lowest vacancy rate for commercial real estate — behind only San Francisco and Salt Lake City.
BY JACOB PALMER | DIGITAL NEWS EDITOR
Portland has the third-lowest vacancy rate for commercial real estate — behind only San Francisco and Salt Lake City.
The city has a 9.1 percent vacancy rate.
More than 1.1 million square feet of space remains in the development pipeline, with 2016 deliveries expected to top any year since 2008. But since the majority of new space is already leased upon delivery, vacancy is expected to remain low and rents high in the report’s extended forecast, according to JLL.
The bulk of new office development has been speculative, the quarterly report found, and is taking place in the central business district and close-in submarkets. Meanwhile, office rents in suburban areas haven’t yet justified new development and so there is “virtually none” happening outside the central city.
Rents rose 9.8 percent year-over-year in the metro area, reaching $24.08 per square foot. In Portland’s central business district, rents reached $31.22 per square foot for class A – or top-quality – office space. Rent in the central business district rose by 6.4 percent in the last quarter alone, the report found.