Portland's Commercial Real Estate Market: A Data-Driven Overview

Portland, Oregon, is a city known for its progressive values, vibrant culture, and stunning natural beauty. It also boasts a dynamic and evolving commercial real estate market, offering a compelling opportunity for investors and businesses. Let's dive into the data and explore the key sectors shaping Portland's commercial real estate landscape. Portland: A Thriving City Before we delve into the specifics of commercial real estate, it's important to understand the context. Portland boasts a diverse economy, a growing population, and a strategic location in the Pacific Northwest. Population: The Portland-Vancouver-Hillsboro metro area has a population of over 2.5 million, with a nearly 22% increase since 2010. Economy: The Greater Portland area's total Gross Domestic Product is over $204 billion, demonstrating 31% growth in the past ten years. Key industries include technology (the "Silicon Forest"), manufacturing, healthcare, and green energy. Job Market: Portland has a 3.8% unemployment rate (as of May 2024) and boasts major employers like Providence Health & Services, Intel, Oregon Health & Science University, Nike, and Legacy Health. Key Commercial Real Estate Sectors Industrial: Market Overview (CBRE Portland Industrial Figures Report Q2 2024): Inventory: 221,815,348 SF Vacancy rate: 5.1% Under construction: 3,161,244 SF     Net absorption: -1,610,452 SF (YTD) Key Trends: The industrial market is experiencing consistent demand, particularly for warehousing and logistics space. While financing challenges and increased supply have put some pressure on the market, prime spaces with interstate access and ample clearance heights remain highly sought after. SEARCH INDUSTRIAL PROPERTIES FOR SALE (or CONTACT US FOR A FULL LIST) Office: Market Overview (Colliers Portland Metro Office Market Report Q2 2024): Inventory: 68,396,269 SF Vacancy rate: 23.4% Net absorption: -1,535,194 SF (YTD) Under construction: 368,347 SF Key Trends: The office market is showing signs of recovery, with key lease transactions and decreased returned space. However, high construction costs and tenant leverage continue to pose challenges for landlords. SEARCH OFFICES FOR SALE (or CONTACT US FOR A FULL LIST) Retail: Market Overview (Colliers Portland Metro Retail Center Market Report Q1 2024): Inventory: 55,325,547 SF Vacancy rate: 5.7% Under construction: 151,180 SF     Net absorption: 72,328 SF (Q1 2024) Key Trends: Robust suburban leasing activity is a highlight, particularly in Clark County/Vancouver, WA. Cost efficiency is driving a trend towards second-generation big box spaces. SEARCH RETAIL PROPERTIES FOR SALE (or CONTACT US FOR A FULL LIST) Multifamily: Market Overview (Colliers Portland Metro Multifamily Market Report Q1 2024): Total housing units: 1,065,476 Multi-unit inventory: 237,567 units Vacancy rate: 6.2% Average effective rent: $1,714 Net absorption: 1,301 units (Q1 2024) Under construction: 8,250 units Key Trends: Strong demand is leading to high absorption rates, but downward pressure on rents persists. The market shows signs of stabilizing, with potential for future rent growth and increased occupancy rates. SEARCH RETAIL MULTI-FAMILY HOMES FOR SALE (or CONTACT US FOR A FULL LIST) Investment Considerations in Portland Portland's diverse commercial real estate market presents a range of investment opportunities. However, it's crucial to consider various factors: Interest Rates: Rising interest rates can impact financing costs and investment returns. Economic Conditions: The overall health of the economy and potential for recession should be factored in. Local Regulations: Portland has specific land use and zoning regulations that can influence development and investment. Sustainability: Environmental sustainability is a major focus in Portland, impacting building design and operations. Conclusion Portland's commercial real estate market is dynamic and complex, offering both challenges and opportunities. By staying informed about market trends, conducting thorough due diligence, and considering the factors mentioned above, investors and businesses can position themselves for success in this thriving city.

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Sagard Real Estate Expands Portfolio with Acquisition of Oswego Village in Lake Oswego, Oregon

Sagard Real Estate, formerly known as EverWest Real Estate Investors, has recently acquired Oswego Village, a premier 103,000 square-foot grocery-anchored retail center located in the upscale downtown area of Lake Oswego, Oregon. The acquisition reflects Sagard Real Estate's continued strategy of investing in high-quality, well-located properties with long-term value potential. Prime Location and High-Quality Tenants Oswego Village stands out due to its prime location in one of Oregon’s most affluent communities. Anchored by high-credit tenants such as Whole Foods and Ace Hardware, the property is poised to offer sustained growth and stability. According to Tom Stover, Managing Director of Acquisitions at Sagard Real Estate, "Oswego Village represents the kind of high-quality, grocery-anchored retail assets we seek to add to our portfolio. The property’s location in Lake Oswego, coupled with its strong tenant base, positions it for long-term value creation." The retail center's location in Lake Oswego offers significant advantages. The area boasts an average household income of over $200,000 within a one-mile radius, making it an attractive destination for both national retailers and local consumers. Known for its scenic beauty, exceptional schools, and strong sense of community, Lake Oswego is one of the most sought-after neighborhoods in Oregon. Recent Renovations and Strong Tenant Retention Oswego Village has undergone extensive renovations between 2019 and 2021, which have contributed to its strong tenant retention and active engagement with the local community. The center features a balanced mix of national and regional tenants, providing a diverse array of services such as food and beverage, lifestyle, and healthcare options to meet the everyday needs of residents. As part of its commitment to maintaining the property’s appeal, Sagard Real Estate plans to implement additional targeted upgrades. These improvements will further solidify Oswego Village’s position as a premier retail destination in the Lake Oswego area. About Sagard Real Estate Sagard Real Estate is an experienced real estate investment advisor and operator, managing a portfolio of $4.9 billion in assets across the U.S. The firm specializes in portfolio management, acquisitions, asset management, development, and property management for investors. With regional investment offices in key cities such as New York City, Charlotte, Austin, Los Angeles, and San Francisco, Sagard Real Estate is recognized for its strong track record and deep understanding of the commercial real estate market. Sagard Real Estate is part of Sagard, a global multi-strategy alternative asset management firm with over US$25 billion under management. Sagard operates across various investment strategies, including venture capital, private equity, private credit, and real estate, delivering flexible capital and value-creation expertise across North America, Europe, and the Middle East. For more information, visit www.sagard.com/realestate or follow Sagard Real Estate on LinkedIn.

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