INDUSTRIAL MARKET REPORT

Transcription

1 PORTLAND INDUSTRIAL MARKET REPORT capacitycommercial.com

2 WHERE ARE WE NOW? Total Inventory Total Vacancy Vacancy Rate Absorption Under Construction 200,897,366 SF 6,286,464 SF 3.1% 1,130,132 SF 2,478,823 SF VACANCY The vacancy rate for warehouse decreased 0.28% since the third quarter. Only 393,617 SF of new product came on-line in the fourth quarter. Notable transactions are noted on the following pages. CONSTRUCTION Approximately 2.5 million square feet is under construction as we head into We will continue to see the East County and NE Portland as the main submarkets for development given the lack of land supply in other submarkets. ABSORPTION Year-to-date absorption as of was 4,558,811. absorption statistics were uncharacteristically high as they include the Q3 delivery of two facilities for Amazon totaling million square feet of the total year-to-date absorption. RENTAL RATES / SALE PRICES Rental rates have risen slightly over the course of the year but remain in the $0.50-$0.55 per square foot range for Class A, new construction. In certain submarkets such as NW Portland, Tualatin, and Wilsonville rates have eclipsed $0.60 per square foot. Sale Prices continue upward trend while cap rates for Class A product remain in the low 5% range.

3 UNDER CONSTRUCTION [PARTIAL LIST] DEVELOPMENT DEVELOPER / OWNER SUBMARKET DELIVERY TOTAL SF TUALATIN DISTRIBUTION CENTER BLACK CREEK GROUP TUALATIN Q ,558 PORTLAND PORTAL PANATTONI EAST COLUMBIA CORRIDOR 359,836 CLACKAMAS CORPORATE PARK TRAMMELL CROW / CLARION CLACKAMAS 280,000 MAJESTIC TUALATIN MAJESTIC REALTY CO. TUALATIN 226,960 PINE FARM BUSINESS CENTER (FLEX) PINE FARM INDUSTRIAL PARK LLC SUNSET / HILLSBORO 58,000 THE CUBES TROUTDALE CRG EAST COLUMBIA CORRIDOR Q ,080 NE JACOBSON & CROENI AVENUE WOODBURN INDUSTRIAL CAPITAL SUNSET / HILLSBORO Q ,000 BLUE LAKE CORPORATE PARK TRAMMELL CROW / PRINCIPAL EAST COLUMBIA CORRIDOR Q ,500 MARKET WIDE CONSTRUCTION TOTAL: 2,478,823 SF

4 NOTABLE TRANSACTIONS NOTABLE SALES 6433 SE LAKE RD. 992,190 SF $48,500,000 ($48.88/SF) NOTABLE LEASES NE SANDY BLVD. 299,113 SF $18,800,000 ($62.85/SF) Buyer: Specht Properties Seller: SuperValu Buyer: Dermody Properties Seller: Boyd s Coffee NE RIVERSIDE PKWY NE HALSEY ST. 153,232 SF $22,200,000 ($144.88/SF) 16,756 SF $5,600,000 ($334.21/SF) Buyer: Schilling Paradise Corp. Seller: Panattoni Development Buyer: Lyrical Foods DBA Seller: Sunshine Dairy Foods 139 SE MLK JR. BLVD. 801 SE ALDER ST. 42,485 SF $8,330,000 ($196.07/SF) 36,557 SF $6,100,000 ($166.86/SF) TUALATIN DISTRIBUTION CENTER 86,481 SF Tenant: MS International Landlord: Black Creek Group RIVERGATE CORPORATE CENTER III Tenant: USA Warehousing 151,050 SF Landlord: Black Creek Group R EN EWA L HELECO DISTRIBUTION CENTER Tenant: Goodwill 144,500 SF Landlord: Heleco DC Buyer: LLJ Ventures Seller: BRIDGE Housing Corporation Buyer: W. Harrison Investments LLC Seller: ADR Investments LLC LEVETON CORPORATE CENTER - BLDG A SW 112TH AVE BUTTEVILLE RD. NE Landlord: Mittleman Properties 61,380 SF $8,100,000 ($131.96/SF) Buyer: EverWest Development Seller: CUI Global 239,072 SF $22,500,000 ($94.11/SF) Buyer: Pacific NW Properties Seller: Sutherland Development LAN D SALE SE KINSMAN RD. 108,487 SF $14,715,000 ($135.64/SF) Buyer: Dermody Properties Seller: Steven & Maria Whitrock 755 NE COLUMBIA BLVD. 1,653,973 SF $15,582,431 ($9.42/SF) Buyer: Bridge Development Partners Seller: Lehigh Hanson Inc. Tenant: Veris 140,000 SF THE FORUM CAMPUS AT CLACKAMAS Tenant: Calavo Growers 134,692 SF Landlord: Forum Clackamas Campus LLC R EN EWA L NE AINSWORTH CIRCLE Tenant: Johnstone Supply Landlord: Stockbridge 126,303 SF

5 MARKET TRENDS VACANCY CLARK COUNTY 3.9% RIVERGATE GUILDS LAKE 1.7% 2.4% AIRPORT WAY HILLSBORO 0.9% 217 CORRIDOR TIGARD ECC 4.4% 6.5% CLACKAMAS / MILWAUKIE 1.1% TUALATIN WILSONVILLE 4.8% 3.2% 1.4% OREGON CITY 1.4% 2.5%

6 PREDICTIONS FOR EARLY BEGIN TO SEE MORE USER BUILDINGS COMING AVAILABLE AS OWNERS DECIDE TO CAPITALIZE ON RECORD PRICING 2 CENTRALLY LOCATED INFILL AREAS WILL BE IN HIGH DEMAND AS E-COMMERCE CONTINUES TO SERVICE THE LAST MILE PROVIDER 3 VACANCY RATES WILL CONTINUE AT THEIR NEAR RECORD LOWS 4 LACK OF SITES WILL PUSH SPECULATIVE DEVELOPMENT TOWARD SECOND TIER MARKETS 5 CONSTRUCTION STARTS WILL DECLINE DUE TO A LACK OF SHOVEL-READY SITES 6 CONSTRUCTION COSTS WILL CONTINUE THEIR UPWARD TREND PRIMARILY DUE TO LABOR COSTS 7 CAP RATES WILL CONTINUE TO COMPRESS WITH INCREASED DEMAND AND LOW INVENTORY 8 RENTS WILL REMAIN STRONG AND STABLE AT CURRENT LEVELS (SEE PAGE 2)

7 PORTLAND INDUSTRIAL EXPERTS LOCALLY OWNED. GLOBALLY CONNECTED. DON OSSEY, SIOR JOHN FETTIG, SIOR DAVE ELLIS SCOTT KAPPES, SIOR ALLEN PATTERSON, SIOR MARK CHILDS, SIOR JEFF VALDES F. MICHAEL NUGENT KENNY HOUSER SCOTT MILLER TOM KNECHT DANIEL HELM 805 SW Broadway, Suite 700 Portland, OR LAURA GENTRY, CPM MIKE HALE MILES vonbergen RUSS MAHAN capacitycommercial.com