Technology companies are driving the market in Portland. Higher office rents as well as the soaring cost of living in traditional technology markets like Seattle and San Francisco have been the catalysts for the trend of technology companies relocating or expanding to less expensive markets like Portland.
- Total vacancy rate in the Portland Office market for Q2 2016 remained steady at 8.41%. Portland CDC was at 9.29%. Eastside (3.56%), Johns Landing (4.49%), Lake Oswego/West Linn (4.55%) and Lloyd District (5.15%) submarkets are the tightest markets. 217 Corridor/Beaverton (14.27%) and Kruse Way (11.72%) are the submarkets with the highest vacancy.
- Total market direct asking rental rates increased slightly. Class A up to $25.43/rsf with Class B up to $23.33/rsf. Portland CBD Class A rents continued to command the highest asking rent of $30.66/rsf with Lloyd District not far behind at $30.38/rsf. Portland CBD ($28.63/rsf) was the most expensive Class B submarket by a wide margin followed by Lake Oswego/West Linn ($25.97/rsf) and Lloyd District ($25.96/rsf).