By JON BELL
From Mercari Inc.’ s 19,082 square feet at 2&Taylor to D+H Financial Technologies’ 45,617 square feet inside 1320 Broadway, Portland’s office market was packed with notable leases in 2016.
Many of those were signed for spaces in the central business district and the inner east side, where creative and tech companies expanded their footprints to match company expansions.
“Over the last few years, Portland’s CBD and close-in east side office markets have benefited from its growing tech and creative service sectors, which led the way for creative office build-outs,” said Matt Johnson, managing director at Cushman & Wakefield here in Portland. “2016 was no different. What was most notable about 2016 was that many of the larger lease expansions were companies that started in Portland, such as Puppet Labs, Vacasa Rentals and Simple.”
In its fourth quarter 2016 office report, Cushman & Wakefield noted that the overall average asking rent in the CBD was up nearly 11 percent over 2015 to $30.93 per square foot. The firm also reported that the overall vacancy rate rose a bit to 10.6 percent, but much of that was attributed to new inventory added to the market that had yet to be absorbed.
All signs, the report noted, point toward a strong 2017.
“We are optimistic about the Portland office market as we charge into 2017,” said Dan Swift, managing director of Cushman & Wakefield, in a statement. “Downtown Portland, a centerpiece and good barometer for the region’s office sector, maintains strong fundamentals, which has also positively impacted surrounding areas. The central business district is expanding.
“Additionally, we have seen a handful of downtown’s most preeminent towers sell to major institutional investment firms further exemplifying the desirability, opportunity, and belief in the Portland market going forward.”
