Measurable Signs of Recovery by Year's End

PORTLAND, OR-Colliers International says its office and industrial brokers are witnessing an increase in leasing and sales activity but still believe measurable signs of recovery may not surface until the end of the year.

Moreover, the report says the office market may recover more quickly than industrial. The office market experienced positive absorption, although just 6,400 sf, for the first time in the past twelve months, according to the report.

Much of the activity has been smaller lease transactions, mostly in the range of 4,000 sf to 8,000 sf, according to the report. While the CBD has seen a two-point decrease in sublease vacancy, the Westside markets are still wobbly, with class A vacancy hovering at 20%. Although most asking rental rates have not decreased, the report states that overall effective rents in the office market have decreased by approximately 10% due to increased concessions offered to both new and renewal tenants.