From the Portland Business Journal:
Business Journal staff writer Wendy Culverwell highlights the Portland commercial real estate roundup, here is the article (also posted from Joseph Bernard Investment Real Estate’s website), Wendy always does an excellent job covering real estate in Portland.
- Wendy Culverwell
Journal staff writer – Portland Business Journal
- The apartment market will continue to lead the commercial sector in 2012 and Portland is one of the cities leading the nation’s hottest real estate property.
Portland is tied with Minneapolis for the nation’s second lowest vacancy rates at 2.5 percent. New York City ranks first at 1.8 percent, according to a commercial forecast released Friday by the National Association of Realtors .
The Realtor group said the multifamily market will continue to tighten nationally, dropping 0.2 points
to 4.7 percent by the first quarter of 2013. Apartment rents will increase an average of 3.8 percent in 2012 after climbing an average of 2.2 percent in 2011. Rising demand will result in absorption of 209,900 units this year and another 223,600 in 2013.
The Realtor group anticipates modest declines in other property sectors as well.:
• Office: The average vacancy rate will fall to 16 percent by next year from its current 16.4 percent. Rents will increase an average of 1.9 percent in 2012 and another 2.4 percent in 2013. The tightest office markets are Washington, D.C. (9.5 percent), New York City (10 percent) and New Orleans (12.4 percent). The Portland area office vacancy rate is 11.4 percent, according to Colliers International .
• Industrial: The average vacancy rate will fall to 10.9 percent by next year, from its current 11.7 percent. Rents will rise 1.8 percent in 2012 and 2.3 percent in 2013. The tightest markets are Orange County, Calif. (4.8 percent), Los Angeles (4.9 percent) and Miami (7.6 percent). The Portland area industrial vacancy rate is 8.7 percent, according to Colliers International.
• Retail: The average vacancy rate will drop to 11 percent by next year from its current 11.9 percent.
Retail rents will rise 0.7 percent this year and 1.2 percent in 2013. The tightest markets for retail are San Francisco (3.6 percent), Fairfield County, Conn. (5.1 percent) and Long Island, N.Y. (5.4 percent). The Portland area retail vacancy rate was 6.38 percent at the end of the third quarter, according to NAI Norris, Beggs & Simpson .
Wendy Culverwell covers real estate, retail and hospitality.