Q4 Begins Industrial Market's Rebound

PORTLAND-The metro area industrial market is looking up after a strong fourth quarter, according to the latest report from the local office of Grubb & Ellis.

The overall industrial vacancy rate in the metro region shrunk by more than one-half a point to 11.6% on net absorption of 1.4 million sf, an amount not seen since the early part of 2000, according to Patricia Raicht, G&E’s local research director. Net absorption for the year was around two million sf, she says.

The warehouse/distribution sector is recovering more rapidly, with vacancy rates dropping almost a full point to 10.7%. The flex market is still struggling with vacancy at 14%. Rental rates have stabilized in the high $0.30s for newer manufacturing, warehouse and distribution space, but there continues to be some downward pressure on flex rental rates, which range from the $0.50s in Clark County to $1.05 on Swan Island, according to the report.