Portland Retail Market Improving Slightly in 2003

PORTLAND-According to the latest National Retail Index produces by Marcus & Millichap, the Portland-region retail market will see gains in occupancy and rents during 2003.

The NRI ranks 38 retail markets nationwide based on a series of 12-month forward-looking supply and demand indicators. The top-ranked markets are typically characterized by low vacancies, prospects for rental growth, limited new development, and solid employment and household growth.

The forecast, which ranks Portland 24th, predicts retail vacancy in the Portland region will decrease from 6.5% to 6.3% by year’s end while average asking rents will rise by 0.5% to $18.60 per sf. Portland dropped three spots in the rankings due to slow rent growth and modest employment gains forecast for 2003. After two consecutive years of layoffs, local employers will add to payrolls in 2003, with job growth of 1.1% forecast. Employment gains in 2003, however, will not make up for losses incurred during the recent economic downturn.