Portland Office Market Report
Some Bright Spots Emerge in Portland's Office Sector;
Construction Concentrated Outside the Core
Suburbs outperform the urban core. The prevalence of remote work and safety concerns downtown during the health crisis prompted a flight to the suburbs that benefited submarkets like Clark County, Southeast Portland and the Westside. Here, local availability has fallen by at least 120 basis points over the past year ending in March. In contrast, the Portland CBD has experienced significant moveouts, as suburban locales offer firms reduced tax burdens relative to the urban core. Looking ahead, future demand in Downtown Portland is expected to improve. As more employers push for a return to offices, it is possible that demand for high-quality office space that includes amenities, such as outdoor space, fitness centers and dining options, rises. Furthermore, the use of concession packages may increase due to the CBD's high vacancy, which has the potential to attract firms seeking discounted Class A space.