Westside Remains Strong
- The Westside submarket comprises 76% of total Flex product supply for the Portland Metro market, or 15M SF of 19M SF, which results in a strong effect on total market statistics.
- Average rental rates on the Westside are $1.12 PSF/month NNN, which is $0.08 PSF/month higher than average for the region. Looking five years back, since Q1 2013, market-wide rents have increased 30%, from $0.80 PSF/month NNN to $1.04 PSF/month NNN.
- Vacancy rates in the Central City continue to decline and rental rates lead the region at $1.28 PSF/month NNN.
- Clark County shows strong positive net absorption of over 25k SF, and incredibly low vacancy in the West & Central Vancouver and Camas/Washougal/Outlying submarkets, 2.11% and 1.56%, respectively. While Vancouver Mall/Cascade Park/Orchards has a high vacancy of 27.49%, which is down year-over-year. Over 36k SF of space was absorbed this quarter.
- Occupying the largest Flex lease this quarter is Faith Bible Christian School, a religious-based high school that leased 26,411 SF at 20475 NW Amberwood Drive in Hillsboro.
- While vacancy across the market increased by 40 basis points year-over-year, from 7.5% to 7.9%, net absorption market-wide remains strong and is forecasted to increase. Looking five years back, since Q1 2013, vacancy has decreased 5.5%, despite 3M SF of new supply delivered during that time period.
Westside Market Breakout
- 90k SF delivered
- 20k SF under construction
- 76% of Portland MSA Flex supply
- $1.12 PSF/month NNN average