The Portland Office market ended the fourth quarter 2011 with a vacancy rate of 10.4%.
The vacancy rate was down over the previous quarter, with net absorption totaling positive 283,882 square feet in the fourth quarter. Vacant sublease space increased in the quarter, ending the quarter at 412,111 square feet.
Tenants moving into large blocks of space in 2011 include: Hewlett Packard moving into 142,850 square feet at Columbia Center at Columbia Tech Center; Oregon Institute of Technology moving into 131,851 square feet at 27500 SW Parkway Ave; and Portland Energy Conservation, Inc. moving into 73,489 square feet at First & Main Bldg.
Rental rates ended the fourth quarter at $19.83, an increase over the previous quarter.
A total of four buildings delivered to the market in the quarter totaling 132,157 square feet, with 510,655 square feet still under construction at the end of the quarter.
This trend is compared to the U.S. national office vacancy rate, which decreased to 12.3% from the previous quarter, with net absorption positive 21.73 million square feet in the fourth quarter.
The information in this news report is based on CoStar’s Fourth Quarter 2011 Market Report, a 40+ page comprehensive research report available to CoStar subscribers. To learn more about quarterly research reports and other benefits available to CoStar subscribers, please call 888-226-7404.