Portland Industrial Market Report
Aided by a Timely Wane in Development, Portland’s
Lack of Vacant Space Garners a National Spotlight
Northwest’s sturdiest industrial market eluding headwinds. Portland entered April 2023 in a position of strength, with industrial vacancy sitting in the low-3 percent range and the pace of annual asking rent growth remaining near a record high. While other markets across the nation are recalibrating as aggressive construction eclipses economically curbed demand, Portland’s industrial segment continues to exhibit resilience. The metro is projected to be one of just four major U.S. markets to register a vacancy decline during 2023, benefiting from a moderate construction pipeline and a thin slate of speculative projects. Portland’s 2023 supply addition is slated to be 2 million square feet smaller than its trailing five-year average, helping achieve a vacancy rate that beats nearby Seattle-Tacoma and Northern California’s tightest metros by 100-plus basis points at year-end. A central position between these West Coast hubs, meanwhile, creates an advantageous demand magnet.