In an index that covers 44 metro areas across the country, Portland rose from No. 13 in 2011 to No. 6 in 2012.
Faith Cathcart/The Oregonian/2007 fileA for-lease sign in a vacant storefront. Marcus & Millichap, a national commercial real estate investment company, says Portland stands out among retail real estate markets because of falling vacancy and job gains.Payroll growth and a
decline in vacancy will push the Portland area into one of the country's top
retail real estate markets for investors, the commercial real estate firm
Marcus
& Millichap reported Monday.
In an index that covers 44 metro areas across the country, Portland rose
from No. 13 in 2011 to No. 6 in 2012. The firm predicts rent hikes in
high-traffic urban districts as vacancy declines.
The firm says Portland also showed strength in retail sales and the growth
in high-tech manufacturing jobs, good news for retail tenants -- and their
landlords. Intel's new factory in Hillsboro contributed to the strong showing,
though it's not expected to open until 2013.
Marcus & Millichap predicts an average 0.9 percent increase in asking
rents across the area to $19.73 per square foot. Effective rent, which takes
into account concessions made by landlords, is forecasted to rise 1.4 percent to
$17.03.
Vacancy, meanwhile, is expected to fall half a percentage point, to 5.8
percent.
But some areas won't see the improvement as clearly. Vacancy in Vancouver
and Clark County is expected to stay in the double digits through 2012, the firm
said.
Retail construction, meanwhile, is expected to fall after two years of
gains. The firm predicted 350,000 square feet of retail space will be built in
2012, a decline from 534,000 square feet delivered in 2011.
--
Elliot Njus
