The Portland Commercial Real Estate Market

Portland represents a growing and thriving market where commercial real estate investors and tenants alike can participate and find success. The Portland scene features a sprawling MSA with an increasing labor force and highly competitive acquisition and rent costs compared to other West Coast metros. 

Crexi connects individuals interested in Portland commercial real estate to hundreds of investment-ready assets in the area and the tools they need to research, identify, and acquire the ideal property. 

Brokers representing Portland commercial property for sale use Crexi's robust listing and management tools to navigate their deals from list to close more quickly. At this time, Crexi's commercial real estate technology has aided brokers in closing over $615 billion in property value and marketing more than $7  trillion in assets.

Crexi proudly supports Portland, Beaverton, Tigard, Gresham, Lake Oswego, and the surrounding communities as the nation's fastest-growing commercial real estate platform.

The State of Portland Commercial Real Estate 

Located in the Pacific Northwest, Portland is the largest city in Oregon, anchoring a metropolitan area spanning multiple counties. The region offers a rich tapestry of urban, suburban, and natural environments and is known for its progressive ethos. 

The city is geographically and economically significant, hosting various key businesses across multiple sectors such as technology, manufacturing, and sustainability. Notable companies like Nike, Intel, and Adidas have a substantial presence in the region, contributing to its reputation as a hub for innovation and creative industries.

Commercial real estate development activity in Portland is particularly dynamic, with numerous multifamily and commercial projects underway to accommodate the influx of new residents and businesses.

Portland Regional Breakdown

The Portland metro area has witnessed significant population growth over the past decade, driven by high quality of life, robust job market, and strategic location along major transportation corridors.

• Portland is the county seat of Multnomah County and the largest city in Oregon, home to over 630,000.
• Metropolitan Portland comprises Multhoman, Washington, and Clackamas counties.
• Population of the Portland-Vancouver-Hillsboro metro area is more than 2.5 million.
• Since 2010, the population has increased by nearly 22%, according to the United States Census Bureau.
• Niche.com ranks Portland as one of the best places to live in the US and among the best cities for young professionals.
• The median age is 39.4, which is about the same figure as the US, based on data from CensusReporter.org.
• The per capita income is $48,966, and the median household income is $89,312, about 20% higher than in the US.

Portland Job Market

Portland's economy is robust and diverse, driven by key industries such as technology, manufacturing, healthcare, and green energy. Major companies like Intel, which operates one of the world's largest semiconductor fabrication plants in nearby Hillsboro, and Nike, headquartered in Beaverton, are significant employers contributing to the region's economic vitality. 

The technology sector, often dubbed the "Silicon Forest," has seen remarkable growth, supported by a strong network of startups and established firms. Additionally, the healthcare industry, with institutions like Oregon Health & Science University, plays a critical role in job creation and economic stability. 

Government initiatives such as tax incentives for tech firms, investment in public transportation infrastructure, and policies promoting sustainable development have further spurred economic growth. These efforts have resulted in steady job growth, making Portland an attractive destination for professionals and businesses.

• Total Gross Domestic Product for Portland-Vancouver-Hillsboro MSA is more than $204 billion, growing by 31% over the past ten years.
• Greater Portland's top industries are apparel and outdoor, bioscience, climate tech, computers and electronics, design and manufacturing, food and beverage, metals and machinery, and software.
• The Silicon Forest is a go-to source for tech jobs, with listings from companies like Intel, Nvidia, Nike, Puppet, M, and Lytics.
• Portland is ranked by WalletHub as one of the best metro areas for STEM professionals, based on key dimensions such as job openings, share of workforce in STEM, and share of job postings in tech.
• Portland is home to several prominent higher education institutions, including Portland State University, known for its urban research programs; the University of Portland, a private Catholic university; and Reed College, renowned for its rigorous liberal arts curriculum.
• Nearly 42% of residents have a bachelor's or postgraduate degree, a rate about 20% higher than in the US.
• The metro area's unemployment rate is 3.8% (May 2024), while the employed population has grown by nearly 1% year-over-year.
• The top 5 major employers in Portland are Providence Health & Services, Intel, Oregon Health & Science University, Nike, and Legacy Health, according to GreaterPortlandInc.com.
• The Downtown Business Incentive credit program, administered by the city of Portland, is a $25 million temporary nonrefundable tax credit designed to encourage commercial lease signings and renewals.
• Eight major development projects are either breaking ground or being completed this year, influencing both housing and commercial sectors.
• The city's reorganization of permitting services aims to address long-standing development concerns, adding opportunity to the market.
• Portland boasts a well-developed transportation infrastructure, including Interstates 5 and 84, the Port of Portland, and Portland International Airport (PDX). It is approximately 170 miles from Seattle and 635 miles from San Francisco. 

Portland Industrial Market

The Portland industrial market is showing consistent demand, especially from sectors like food and beverage warehousing, tech warehousing, and auto part manufacturing. Financing challenges have delayed deal completions and expansions, although spaces with prime features such as convenient interstate access and significant clearance heights remain highly sought after. 

Despite a steady increase in supply and the strain from available sublease space, asking rents are expected to stay flat throughout the year as new construction projects are complete and existing landlords hold rates steady until market conditions improve.

Market overview (CBRE Portland Industrial Figures Report Q2 2024)

• Inventory: 221,815,348 SF
• Vacancy rate: 5.1%
• Under construction: 3,161,244 SF
• Deliveries: 1,156,016 SF
• Net absorption: -1,610,452 SF (YTD)
• Leasing activity: 2,323,563 SF (Q2 2024)
• Key leases by tenant: Wynmore Transfer, Ferguson Enterprises, Omega Morgan, Verts Industries
• Largest submarkets: East Columbia, Hillsboro/Sunset Corridor, Clackamas/Milwaukie, Airport Way

Crexi Insights

These are the most recent Portland industrial lease and sales trends from Crexi Insights (as of July 2024):

For Lease (active)

• Asking rate/SqFt (median): $15 per year
• Median SqFt/listing: 6,939
• Days on market: 292
• Total listings on Crexi: 333 spaces

For Sale (active)

• Median asking price: $2.49 million
• Price/SqFt: $218
• Asking cap rate: 6.6%
• Days on market: 229
• Total listings on Crexi: 79

Sales Comps (past 12 months)

• Median sold price: $2 million
• Sold price/SqFt: $161
• Total sales volume: $246 million
• Sold cap rate: 5.6%
• Median SqFt sold/transaction: 7,800
• Total SqFt sold: 1.01 million 
• Days on market (median): 369

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Portland Office Market

The Portland office market has reported rising vacancy rates, but is beginning to show signs of recovery. Key lease transactions increased confidence in the market despite an overall drop in occupancy. While high construction costs and tenant leverage continue challenging landlords, the competition among local construction subcontractors and decreased returned space signal a slow but steady improvement in market conditions.

Market overview (Colliers Portland Metro Office Market Report Q2 2024)

• Inventory: 68,396,269 SF
• Vacancy rate: 23.4%
• Net absorption: -1,535,194 SF (YTD)
• Deliveries: 0 SF
• Under construction: 368,347 SF
• Key lease transactions by tenant: Tonkon Torp, Decker Brands (Hoka), Interface Engineering 
• Largest submarkets: Central Business District, Northwest, Vancouver, Beaverton

Crexi Insights

For a detailed overview of the Portland office market, rely on Crexi Insights for the latest transactions, leasing trends, and growth in the commercial real estate sector:

For Lease (active)

• Asking rate/SqFt (median): $25 per year
• Median SqFt/listing: 1,835 SF
• Days on market: 364
• Total listings on Crexi: 1,226 spaces

For Sale (active)

• Median asking price: $2.04 million
• Price/SqFt: $254 
• Asking cap rate: 6.4%
• Days on market: 132
• Total listings on Crexi: 112

Sales Comps (past 12 months) 

• Median sold price: $1.14 million
• Sold price/SqFt: $210
• Total sales volume: $69 million
• Sold cap rate: 5.6%
• Median SqFt sold/transaction: 4,986 SF
• Days on market (median): 241

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Portland Retail Market

Portland's retail market is witnessing robust suburban leasing activity, despite a dip in overall sales volume. Interest in commercial real estate is particularly growing in Clark County/Vancouver, WA, potentially expanding the market and creating new investment opportunities. 

Noteworthy leases, such as Sky Zone's 50,000 square foot agreement in Clackamas, highlight a trend toward family-oriented businesses utilizing second-generation big box spaces over new constructions due to cost efficiency, reflecting the retail sector's adaptive strategies amidst evolving economic conditions.

Market overview (Colliers Portland Metro Retail Center Market Report Q1 2024)

• Inventory:  55,325,547 SF
• Vacancy rate: 5.7%
• Under construction: 151,180 SF
• Deliveries: 34,355 SF
• Net absorption:  72,328 SF (Q1 2024)
• Top lease transactions by tenant: Michael’s, Trader Joe’s, Daiso, Goldfish Swim
• Largest submarkets: Westside, Eastside, Clark County, Salem

Crexi Insights

Portland retail lease and sales trends from Crexi Insights (as of July 2024):

For Lease (active)

• Asking rate/SqFt (median): $25 per year
• Median SqFt/listing: 1,994 SF
• Days on market: 374
• Total listings on Crexi: 968 spaces

For Sale (active)

• Median asking price: $1.58 million
• Price/SqFt: $283
• Asking cap rate: 6.5%
• Days on market: 147
• Total listings on Crexi: 142 

Sales Comps (past 12 months)

• Median sold price: $987,000
• Sold price/SqFt: $206
• Total sales volume: $698 million
• Sold cap rate: 5.6%
• Median SqFt sold/transaction: 3,234 SF
• Days on market (median): 236

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Portland Multifamily Market

The Portland multifamily market is witnessing a surge in demand, with renters absorbing over 1,300 units—the highest Q1 absorption since 2021. Despite this increased demand, effective rents are trending downward. However, the positive absorption figures and strong sales volume, which surpassed $250 million, indicate a potentially stabilizing market that could see a return to rent growth and higher occupancy rates if the trend continues.

Market overview (Colliers Portland Metro Multifamily Market Report Q1 2024)

• Total housing units: 1,065,476
• Multi-unit inventory: 237,567 units
• Vacancy rate: 6.2%
• Average effective rent: $1,714
• Deliveries: 1,535 (Q1 2024)
• Net absorption: 1,301 
• Under construction: 8,250 units
• Notable sales by property: Villas at 28th Street/The Farmstead Portfolio $90 million, Creekview Crossing $61.25 million, Skylar Grand $34 million
• Largest submarkets: Southeast Portland, Vancouver, East Portland, East Beaverton

Crexi Insights

Here are the most recent insights on the Portland multifamily market from Crexi (as of July 2024):

For Sale (active)

• Median asking price: $1.8 million
• Price/SqFt: $348
• Price/Unit: $249,000
• Asking cap rate: 5.7%
• Days on market: 120
• Total listings on Crexi: 154

Sales Comps (past 12 months)

• Median sold price: $496,000
• Sold price/SqFt: $303
• Sold price/unit: $411,000
• Total sales volume: $3.58 billion
• Sold cap rate: 5.6%
• Total SqFt sold: 9.06 million
• Days on market (median): 193

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Get more in-depth Portland market data with Crexi Intelligence.