The Portland Commercial Real Estate Market

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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 a growing 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 who represent Portland commercial property for sale harness 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 the closing of over $300 billion in property value and marketing more than $2 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 

The affordable and diverse commercial real estate market in Greater Portland offers both tenants and investors a growth advantage with space that is about half the cost of the San Francisco Bay Area and two-thirds the cost of Seattle.

Reasonable rents and attractive cap rates allow new businesses and buyers to enter the Portland commercial real estate market, helping to keep the economy dynamic and diverse.

Portland is located in Northwestern Oregon, a major port in the Pacific Northwest where the Willamette and Columbia rivers meet. Home to nearly 2.5 million people in the metropolitan area, the City of Portland is the largest and most populous in Oregon and the sixth-most populous on the West Coast.

The economy is vibrant, and the workforce is well educated, boasting a number of STEM well above the national average. High-tech employers in Portland include Intel and ON Semiconductor, while more people in Portland work in manufacturing than Denver and Austin combined.

Greater Portland is home to every type of performing arts imaginable, and has been recognized as having the most vibrant music scene in the country. Portland-area sports teams include the NBA’s Portland Trail Blazers and the WHL’s Portland Winterhawks.

Portland Regional Breakdown

Population growth in metropolitan Portland has outpaced the rest of the state, with Multnomah County in the metro area remaining the most populous county in Oregon. The demand for housing and commercial real estate space in Portland is pushing population growth outward, with the suburban city of Happy Valley witnessing a population surge of nearly 28% over the past five years.

  • Portland is home to over 650,000 residents, with nearly 2.5 million people living in the metropolitan area.
  • The population of Portland has grown by 0.57% year over year.
  • Metropolitan Portland consists of Multnomah, Washington, Clackamas, and Cascadia counties.
  • Major cities in the Portland metro area include Vancouver, Hillsboro, Gresham, and Beaverton.
  • The median household income in Portland is $78,439, and per capita income is $40,526.
  • The median age in Portland is 38.4, a little less than the figure in Oregon.

Portland Job Market

Slowly but surely, the job market in Portland is beginning to recover. Unemployment is down to just 4.6% in the metropolitan area, while job sectors growing the fastest include leisure and hospitality, professional and business services, information, and construction.

  • GDP for Portland-Vancouver-Hillsboro OR-WA MSA is nearly $175 billion and has grown by about 62% over the past decade.
  • Portland’s employment growth has declined by 0.09%, while median household incomes have grown by more than 3.75%.
  • The unemployment rate in the Portland MSA is 4.6%, according to the US Bureau of Labor Statistics (July 2021).
  • Key industry sectors in Greater Portland are clean technology, computers & electronics, software & media, metals & machinery, athletic & outdoor, health sciences & technology, and emerging industries.
  • Top regional employers in Greater Portland include Intel, Nike Inc., US Bank, Precision Castparts Corp., Wells Fargo, Daimler Trucks North America, The Standard, Adidas North America Inc., and Columbia Sportswear Co.
  • The regional workforce in Portland is highly concentrated in STEM fields (science, technology, engineering, and math), with STEM jobs accounting for nearly 7.2% of all jobs.
  • Greater Portland is home to 36 public and private non-profit colleges and universities within 50 miles of the city center, including Oregon State University, University of Oregon, Portland State University, and Clackamas Community College.
  • Portland’s strategic location along the Pacific Rim makes Portland an international and maritime gateway to some of the largest markets in the world.

Transportation infrastructure in the Portland metropolitan area includes six-port districts, two flight terminals, two high-capacity freight railroad lines, two Interstate Highways, and Portland International Airport. Portland International Airport is less than nine miles from the Central Business District and serves more than 18 million passengers annually.  

Portland Industrial Market

The industrial market in Portland continues to outperform other CRE sectors, with new tenants coming to the market and local occupiers expanding. Light manufacturing build-to-suit, niche e-commerce sectors and logistics, and food & beverage users are a few examples of industry sectors looking for industrial space in metropolitan Portland.

  • Total industrial inventory: 215,447,201 SF
  • Average asking rent: $0.79 per SF per month, net
  • Vacancy rate: 4.2%
  • Absorption: 35,145 SF (YTD)
  • New construction: 1,026,168 SF delivered YTD with 1,255,056 SF under construction
  • Largest industrial submarkets: East Columbia, Clackamas/Milwaukie, Vancouver/Clark County, Hillsboro/Sunset Corridor

Discover Portland industrial space for rent.

Portland Office Market

Demand for suburban office space in Portland is driving vacancy rates to about half what the downtown office market is reporting – 12.1% suburbs versus 21.6% downtown. Office leasing activity in suburban Portland is occurring in bursts, with most tenants focusing on options near Interstate 5 or submarkets adjacent to downtown.

  • Total office inventory: 50,562,628 SF
  • Average asking rents: $30.54 per year, full-service gross
  • Vacancy rate: 17.0%
  • Absorption: – 1,169,823 SF (YTD)
  • New construction: 424,700 SF office space under construction and 484,260 SF under renovation
  • Large office submarkets: Northwest, Vancouver, Beaverton, Kruse Way, Hillsboro

Discover Portland office space for lease. 

Portland Retail Market

Rising employment in the metro area is driving the demand for retail space in Portland, with vacancy rates holding steady and asking trends trending up. As work from home becomes a permanent employment option, residents of nearby expensive metros like Seattle and the Bay Area are relocating to Portland as a more affordable living option, leading to higher retail sales for the foreseeable future.

  • Total retail inventory: 48,069,468 SF
  • Average asking rent: $1.68 per SF per month, NNN
  • Vacancy rate: 4.1%
  • Net absorption: -39,566 SF (Q2 2021)
  • New construction: 65,756 SF delivered (Q2 2021) with 623,687 SF under construction
  • Submarkets with most new construction: Clackamas/Milwaukie, North Beaverton, West Outlying
  • Cap rates: 5.6% in Q2 2021 versus 6.5% in Q1 2021

Discover Portland retail property for lease.

Portland Multifamily Market

Compared to more expensive urban areas on the West Coast, the demand for apartments in Portland remains strong, with vacancies trending downward and rents on the rise. The Downtown and Northwest Portland submarkets are popular with tenants and investors, with the metro area offering a more affordable area in which to live and invest.

  • Total housing units: 1,021,843
  • Renter occupied: 48%
  • Total multifamily units: 306,553
  • Average asking rent: $1,633 per month
  • Asking rent growth: 6.7% year-over-year
  • Vacancy rate: 5.5%
  • Deliveries: 7,454 units past 12 months
  • Absorption: 10,118 units past 12 months
  • Popular multifamily neighborhoods: Nob Hill – Northwest District, Downtown Portland, The Pearl, Buckman
  • Median household income: $78,439
  • Per capita income: $40,526

Discover Portland multifamily property for sale.

How Crexi Connects Buyers and Tenants to Portland Commercial Real Estate

Buyers and principals seeking real estate in Portland use Crexi’s robust search features and populated marketplace to find the ideal asset for their needs quickly.

Tenants and investors alike can browse through hundreds of Portland properties and narrow their searches by cap rate, price or rate per square foot, square footage, neighborhood, asset type, and several other parameters.

Once the perfect Portland property appears, buyers and tenants can directly connect with the listing broker to learn more about the property, download any brochures, and even submit a letter of intent (LOI) directly through the platform.

Intelligence Equips Investors with Data and Market Knowledge 

Proper due diligence and research are essential steps in the property acquisition process. Crexi Intelligence seeks to enhance and simplify the research process for those seeking Portland property. 

Intelligence reveals detailed property records and comps on hundreds of thousands of closed assets. A detailed Insights tab showcases real-time Portland market information on every page such as average listing square footage, demographic data, foot traffic volume, and much more. 

Intelligence is available to buyers, sellers, and tenants on a subscription basis.

How Portland Brokers Thrive with Crexi

Portland brokers and those representing Portland properties use Crexi to list more than 1000 properties for sale and for lease within the city limits. Portland’s growing CRE inventory of investment opportunities access a nationwide database of interested buyers and tenants connected to the market by Crexi’s listing marketplace.

Commercial agents in Portland also use Crexi’s robust listing and marketing tools to manage leads, gain real-time insight into leads, and amplify their marketing reach to the broadest, most relevant audience pool.

Portland commercial brokers use Crexi to list assets across different property types, including: 

  • Offices units
  • Industrial buildings
  • Retail properties
  • Multifamily developments
  • Land parcels
  • Mixed-Use buildings
  • Hospitality assets
  • Non-traditional properties such as data centers, self-storage, etc.

Using Crexi’s broker technology, Portland agents can guide their clients’ assets from list to close all in one convenient ecosystem. Brokers can even store and manage due diligence paperwork and closing documentation using Crexi’s secure file vault. 

All these tools are free for brokers, but the real power of Crexi unveils itself with Sale PRO, Lease PRO, and All PRO

Crexi PRO Dashboard 2020

Crexi’s All PRO Membership

Crexi PRO elevates broker workflows to the next level with advanced marketing tools and automated processes designed to help agents widen their reach and close deals faster. Portland brokers enjoy heightened access to lead contact information and can quickly report their successes to their clients with branded lead reports. Crexi PRO simplifies operational processes and allows brokers to do what they do best: prioritize connections and close deals.

PRO transforms successful marketing processes with machine-learning-powered automation tools to connect Portland listings with the most relevant buyers. Based on search behaviors, PRO listings receive preferential placement atop demand-curated results pages and are seen by thousands of active property seekers.

Crexi also sends out weekly email blasts, curating lists of PRO properties that receive a 10-15% higher engagement rate than industry benchmarks.

Crexi PRO users enjoy access to Intelligence’s full library and research tools at no added cost, equipping them with in-market knowledge to pass on to their clients.

With Crexi PRO, brokers can move fast to connect with the more than 56,000 leads who were interested in Portland property in the last two years, as well as the more than three million leads across the US who searched using Crexi in 2020.

On average, Crexi PRO users successfully earn 125% more leads and win up to eight times more deals than non-PRO subscribers. 

Contact to learn more about All PRO.

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Shanti Ryle

Content Marketing Manager

Shanti leads Crexi's content marketing strategies with 7+ years of content development experience, creating everything from blog posts to award-winning podcasts. Previously, she worked on content teams at Snapchat, Weedmaps, and HopSkipDrive as well as developed copy, articles, and media for freelance publications.

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