Industrial Property Action Q124 Recap

2024 is off to a choppy start, with marketwide net absorption totaling around negative 1MM SF.		In Northwest Oregon and Southwest Washington, industrial vacancy increased slightly since last quarter, though our market remains one of the top 10 or so least vacant markets in the country. We attribute the modest increase to a softening of demand, coupled with several new deliveries of buildings hitting the market. Tenants see an opportunity to leverage growing softness in the market, landlords are looking to de-risk their portfolios, buyers are looking for market adjusted yield, and sellers either adjusting pricing expectations or deferring divestitures for the short term.

Lease Rates <>

Growth decelerating.
Lease rates during 2023 saw slowing growth, off of the 15%+ per year of the past several years. We peg current rent growth at flat to 3%.

Sale Prices v

Decreasing slightly.
There were 80 industrial sales over 10,000 SF in 2023. Average price/SF was $165. In 2022 those numbers were 108 and $167.

Vacancy ^

4.1%
Vacancy rose 50 basis points since Q423, due to both negative absorption and a new construction delivery.

Construction ^

2.9MM SF
Development activity saw a single new delivery during the first quarter - Meadowlark Industrial Center in Hillsboro. Additionally, Prologis started construction on Sandy Logistics Center, a 260,000 SF spec building in Northeast Portland.

Notable Market Leases

Space Size	Tenant	Landlord	Submarket
151,363 SF	GTS Interior	Hedinger Group	Northwest
124,628 SF	Ball Corporation	Prologis	Northeast
70,153 SF	WEG	Invesco	Northeast
63,812 SF	Performance Contracting	Prologis	Northwest
60,000SF	Undisclosed	Westcore	Northeast

Notable Market Sales

Sale Price	Property	Size	Buyer	Seller
$31,800,000	Suntech CP	90,792 SF	Landmark Dividend	Washington Capital
$24,500,000	Airport Way CP	140,693 SF	BKM	Stockbridge
$11,100,000	PDX DC, Building 2	59,850 SF	BKM	Stockbridge
$2,650,000	NE Portland	14,721 SF	Gregory Bakken	Randolph Slipher

Featured Team Listings

Prologis Park Clackamas

10500 SE Jennifer St.
Clackamas, OR 97015

50,000 - 910,000 SF
A Class A new development in Clackamas. This site features state of the art specifications and an ability to accommodate a wide range of uses and sizes.

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