Retail Market Report | Q3 2018 · Retail Market Report | Q3 2018 The retail market in Portland...
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Retail Market Report | Q3 2018 The retail market in Portland experienced a minor improvement from the second quarter 2018, going from 3.2% to 3.0%. Net absorption was a positive 449,541 square feet and vacant sublease space increased by (46,448) square feet. Quoted rental rates increased slightly, ending at $17.45 per square foot per year. Six buildings were delivered to the market in the third quarter 2018 and 862,344 square feet are still under construction. With positive 449,541 square feet absorbed, net absorption was moderate in third quarter 2018. The second quarter saw positive absorption at 142,941 square feet. Tenants vacating large spaces include Nordstrom moving out of 72,000 square feet and Sears mvoing out of 71,400 square feet. The vacancy rate went down in the third quarter 2018, ending at 3.0%. The vacancy rate has steadily decreased over the past four quarters. Vacant sublease space has gone down over the past four quarters. At the end of the fourth quarter 2017 there were 202,642 square feet of vacant sublease space and the current quarter ended with 193,938 square feet vacant. PORTLAND MARKET SNAPSHOT VACANCY OVERVIEW ABSORPTION & DELIVERIES Vacancy Rates by Building Type Years 2006 - 2018 Absorption & Deliveries Past 9 Quarters 900 SW 5TH AVENUE, 17TH FLOOR | PORTLAND, OR 97204 | 503.223.3171 | WWW.NORRIS-STEVENS.COM VACANCY RENTAL RATE CONSTRUCTION ABSORPTION 3.0% 862,344 SF $17.45 449,541 SF Source: CoStar Property 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1 2018 Q1 Power Center Specialty Center General Retail Shopping Center Mall Total Market (0.4) (0.2) 0.0 0.2 0.4 0.6 0.8 1.0 1.2 2018 Q3 2018 Q1 2017 Q3 2017 Q1 2016 Q3 Millions of SF 0.23 0.79 0.37 0.14 0.53 0.18 0.09 1.08 0.15 0.31 0.10 0.14 0.15 0.45 0.07 (0.11) (0.25) 0.08 Net Absorption Deliveries
Transcript of Retail Market Report | Q3 2018 · Retail Market Report | Q3 2018 The retail market in Portland...
Retail Market Report | Q3 2018
The retail market in Portland experienced a minor improvement from the second quarter 2018, going from 3.2% to 3.0%. Net absorption was a positive 449,541 square feet and vacant sublease space increased by (46,448) square feet. Quoted rental rates increased slightly, ending at $17.45 per square foot per year. Six buildings were delivered to the market in the third quarter 2018 and 862,344 square feet are still under construction.
With positive 449,541 square feet absorbed, net absorption was moderate in third quarter 2018. The second quarter saw positive absorption at 142,941 square feet.Tenants vacating large spaces include Nordstrom moving out of 72,000 square feet and Sears mvoing out of 71,400 square feet.
The vacancy rate went down in the third quarter 2018, ending at 3.0%. The vacancy rate has steadily decreased over the past four quarters.Vacant sublease space has gone down over the past four quarters. At the end of the fourth quarter 2017 there were 202,642 square feet of vacant sublease space and the current quarter ended with 193,938 square feet vacant.
PORTLAND MARKET SNAPSHOT
VACANCY
OVERVIEW
ABSORPTION & DELIVERIES
Vacancy Rates by Building Type
Years 2006 - 2018
Absorption & DeliveriesPast 9 Quarters
900 SW 5TH AVENUE, 17TH FLOOR | PORTLAND, OR 97204 | 503.223.3171 | WWW.NORRIS-STEVENS.COM
VACANCY RENTAL RATE
CONSTRUCTION ABSORPTION
3.0%
862,344 SF
$17.45
449,541 SF
Source: CoStar Property
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2017 Q1 2018 Q1
Power Center Specialty Center General Retail Shopping Center Mall Total Market
(0.4)
(0.2)
0.0
0.2
0.4
0.6
0.8
1.0
1.2
2018 Q32018 Q12017 Q32017 Q12016 Q3
Mill
ions
of S
F
0.23
0.79
0.37
0.14
0.53
0.18
0.09
1.08
0.15
0.31
0.100.14 0.15
0.45
0.07
(0.11)
(0.25)
0.08
Net Absorption Deliveries
Absorption & Deliveries Last 9 Quarters
DELIVERIES AND CONSTRUCTION RENTAL RATES
For detailed information regarding this report, and to discuss how Norris & Stevens can assist with your real estate needs, please contact us at (503) 223-3171 or visit us at www.norris-stevens.com.
Average quoted rental rates have increased steadily over the past four quarters, ending the third quarter with a 1.3% increase. Third quarter 2017 reported a quoted rate of $16.74, while the third quarter 2018 ended at $17.45 per square foot per year. This represents a 1.55% increase from one year ago.
Six buildings totalling 70,233 square feet were completed and delivered during the second quarter 2018. 462,616 square feet in total have been built in Portland over the past four quarters. 862,344 square feet remain under construction at the end of the quarter. At the end of the quarter in the Portland area, there are 18,346 buildings and 1,169 centers totaling 189,396,976 square feet of total retail inventory.
MarketUnder Construction Inventory Average Bldg Size
# Bldgs Total RBA Preleased SF Preleased % All Existing U/C
Clark County 27 198,314 112,137 56.5% 12,491 7,345
I-5 Corridor 5 133,369 84,358 63.3% 14,857 26,674
Polk County 1 130,000 130,000 100.0% 7,873 130,000
Lane County 8 103,721 81,489 78.6% 9,283 12,965
Deschutes County 7 52,561 45,607 86.8% 11,792 7,509
CBD 2 48,000 10,590 22.1% 13,946 24,000
Northeast 3 40,040 24,040 60.0% 8,317 13,347
Northwest 1 36,000 36,000 100.0% 7,239 36,000
Southwest 4 29,147 17,843 61.2% 13,509 7,287
Lloyd District 1 20,000 14,600 73.0% 14,462 20,000
All Other 13 71,192 59,235 83.2% 9,653 5,476
Totals 72 862,344 615,899 71.4% 10,324 11,977
Construction Activity | Markets Ranked UNDER CONSTRUCTION SF
Source: CoStar Property
Source: CoStar Property
900 SW 5TH AVENUE, 17TH FLOOR | PORTLAND, OR 97204 | 503.223.3171 | WWW.NORRIS-STEVENS.COM
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0.0
0.1
0.2
0.3
0.4
2018 Q32018 Q12017 Q12016 Q12015 Q1
Mill
ions
of S
F
0.42
0.34
0.37
0.18 0.17
0.37
0.30
0.24
0.170.19
0.14 0.15
0.090.08
0.17
0.37
0.31
0.14
0.22
0.18
0.27
0.09
0.15
0.18
0.10
0.21
0.15
0.050.07
(0.01)
Construction Starts Deliveries0.5
Historical Construction Starts & Deliveries Square Footage Per Quarter
