Industrial real estate fundamentals in Portland, OR continue to demonstrate strength despite current economic headwinds. A new report from Kidder Mathews indicates that direct vacancy rates dropped 50 basis points from Q1 of 2022 to 2.6% in the first quarter of 2023, while asking lease rates increased 14.3% year-over-year to an average of $0.85 per square foot NNN across the region.
Leasing activity has seen some slowing due to turbulence, with a 56.3% drop compared to a year ago at 1.41 million square feet for Q1 2023 and an increase in sublease space leading total availability up 60 bps quarter-over-quarter at 5
