Portland Office Market Report
Tenants Drawn to Class A Offices in Clark County,
Leaving Most New Space in the CBD Untenanted
Top-tier vacancy thinning out in Clark County. No income tax in the area and multifamily rents that were nearly $100 below the metro average in March are encouraging local residential demand, prompting employers to follow suit to nearby offices. Some companies are also relocating north of the Columbia River to avoid complications posed by the CBD's transient population, often electing to take up less-costly floor plans. Providing an additional benefit, Clark County’s mean Class A asking rent was $4.41 lower per square foot than the core in March — enabling most tenants to reduce footprint expenses by relocating, without stepping down in quality. As such, local top-tier net absorption has remained positive over the past year, supporting standout property metrics in that subset. Despite hosting nearly half of the metro’s supply additions over the past 12 months, Class A vacancy in Clark County fell to a record low of 8.2 percent. This was in contrast to the metrowide top-tier rate lifting to a historic peak of 20.2 percent during the same frame.