Investment Volume Falls Off

  • Portland sales transactions remain in line with recent quarter-over-quarter trends, although the asset values being transacted are significantly lower than in Q4 and Q1 2017. Price per door decreased $30k from the previous quarter, but remained about the same year-over-year.

  • Despite the early-year drop in transaction value, from $557M Q4 2017 to $465M Q1 2018, the significant number of buildings currently under construction and favorable debt markets foreshadow a considerable increase in sales for the latter half of 2018. Not only will the number of transactions increase, but the value will remain high, given the quality of buildings in the development pipeline.
  • Twenty buildings with 1,552 units were delivered across the region during Q1 2018, which is three more buildings and 472 more units than Q4 2017. Over half the buildings and units were delivered in the City of Portland. This is a precursor to investment sales later in 2018.

  • Despite skyrocketing construction costs, with 91 buildings and 8,700 units in the construction pipeline—73% in the City of Portland—2018 is off to a healthy number of construction starts that are expected hit the market during the second half of 2018.

  • Year-over-year statistics are slightly misleading this quarter because construction deliveries and leasing activity in Q1 2017 were depressed by several significant weather events and political uncertainty.

 

Quick Fact: $465 Million

  • 58 Transactions
  • 2,694 Units