After 152K SF of negative net absorption this quarter (compared to 65K SF of positive net absorption in Q2 2018), it is encouraging to see rental rates continue to climb. The market rate for flex product across the Portland market is now $1.164 on a NNN monthly basis, which is a $0.176 increase from Q2 2018. The largest increase in vacancy was Clark County, which experienced a jump from 9.8% in Q1 2019 to 15.6% in Q2 2019. While the Westside markets also saw modest vacancy increase (6.4% in Q1 2019 to 6.7% in Q2 2019), there is hope to see that decrease over the coming months. Market rents for the Westside submarkets ($1.149/month NNN) still have not reached replacement costs for flex product, meaning speculative construction does not pencil for leasing opportunities.