2019 Q2 Portland Metro Office Report

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For another consecutive quarter, the CBD Perimeter submarkets (Lloyd District, Johns Landing, SE Close-In, NE Close-In, NW Close-In, and SW Close-In), outpaced the CBD in terms of rent growth and vacancy, which decreased 30 basis-points, compared to the CBD’s increasing 50 basis-points. Rental rate growth for these submarkets has also consistently outpaced the CBD: since Q2 2016, the CBD Perimeter submarkets increased rents 20% compared to the CBD’s 12% and since Q2 2014, 43% compared to the CBD’s 32%. While this is likely a result of high quality products hitting the market in place of much lower cost assets, it demonstrates tenant demand for and absorption of surrounding submarkets. While downtown will remain the top choice for traditional office users, like law and accounting firms, the up-and-coming districts (Slabtown, Central Eastside, and N Williams Corridor) that now have a critical mass supply of high quality office space, are increasingly attractive to creative industries who want a more vibrant neighborhood aesthetic to attract top talent.

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2019 Q2 Portland Metro Office Report

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