Portland-Area Industrial Market OK, Considering

PORTLAND-Like the rest of the nation, the Portland industrial market has seen a slowdown through the first three months of the year, according to the latest market report from the local Grubb & Ellis office. Absorption, compared to last years pace, was modest at 478,000 sf, vacancy rates are up just over a point to 7.8% and some expansion projects are on hold or have been cancelled. Still, the report concludes the market has fared remarkable well considering the general downturn in the economy.

A few dot-gones with industrial needs have disappeared or been swallowed by consolidation or reorganization, leaving behind large sublease space, according to the report, but land values remain extremely strong and prices continue to rise. “Developers and users continue to review any available industrial land for future development with the expectation that this current economic downturn will be short-lived,” states the report, “and that by the end of this year the high-tech manufacturing sector will be back into a growth mode.”

In addition, finds the report, industrial buildings have maintained their value. The report cites a recent study by Integra Realty Resources ranking Portland in the top ten markets in the country for industrial investment with an anticipated growth in value of 8% through 2003.