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Portland Market

PREPARED BY

Office Market Report

OFFICE MARKET REPORT

Market Key Statistics 2

Leasing 3

Rent 7

Construction 10

Under Construction Properties 12

Sales 14

Sales Past 12 Months 16

Economy 18

Market Submarkets 21

Supply & Demand Trends 25

Rent & Vacancy 27

Sale Trends 29

Portland Office

7/2/2019Copyrighted report licensed to Capacity Commercial Group - 500835.

OverviewPortland Office

12 Mo Deliveries in SF

895 K12 Mo Net Absorption in SF

483 KVacancy Rate

7.5%12 Mo Rent Growth

2.4%Portland’s strong economy is spurring demand for themetro’s office market. New supply reached a cycle peakin 2018, with 1.7 million SF delivered. More than 2 millionSF has been actively under construction since the end of2016, and the pipeline for 2019 is also formidable.However, much of the newest space is build-to-suit,primarily campus expansions for Nike and Adidas.

So far, vacancy has held up under the supply wave,remaining far below the long-term average. As of May2019, over 1 million SF had been absorbed in the past12 months. Annual rent growth has moderated over the

past year and is now comparable to the historicalaverage.

Office investment in 2019 has already outpaced the firsttwo quarters of last year, and sales volume has roundedto $1.25 billion or higher each of the past four years.Office properties here sell at lower prices thancomparable assets situated in alternative West Coastmetros, including San Jose, San Francisco, and nearbySeattle, making Portland an appealing choice forinvestors.

KEY INDICATORS

Market RentVacancy RateRBACurrent Quarter Availability RateNet Absorption

SFDeliveries SF

UnderConstruction

$32.528.9%31,497,2734 & 5 Star 13.0% (34,953) 0 1,777,210

$25.768.4%44,685,3223 Star 10.8% (33,786) 0 499,107

$22.134.8%30,846,1091 & 2 Star 6.0% (11,759) 0 0

$26.797.5%107,028,704Market 10.1% (80,498) 0 2,276,317

ForecastAverage

HistoricalAverage

12 MonthAnnual Trends Peak When Trough When

8.4%9.5%0.3%Vacancy Change (YOY) 13.8% 2004 Q1 6.8% 2017 Q4

761,6621,129,475483 KNet Absorption SF 3,370,814 2005 Q2 (895,445) 2009 Q4

1,225,740908,564895 KDeliveries SF 1,828,335 2006 Q4 94,649 2013 Q4

1.4%2.4%2.4%Rent Growth 7.2% 2007 Q1 -4.7% 2009 Q4

N/A$840.3M$1.8 BSales Volume $2.1B 2007 Q2 $161.0M 2009 Q4


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LeasingPortland Office

Flat Portland office vacancies have held fairly steady forthe past few years, benefiting from strong tenant demandand limited speculative supply. Quarterly vacancy hasconsistently rounded to 7% since the end of 2015. Whilesome high-profile, recent speculative deliveries arelingering on the market, only 16% of square footagedelivered in 2018 remains available for lease. Similarly,just 23% of space under construction is available forlease.

Most of Portland’s recent net demand stems from build-to-suit projects, as several large office tenants expandtheir existing campuses. Nike is midway through a 1.4-million-SF expansion in the Sunset Corridor/HillsboroSubmarket. Adidas broke ground in 18Q3 on a 425,000-SF campus expansion, creating room for an additional1,000 employees. Finally, NW Natural has committed torelocating its headquarters to the 191,000-SF 250 Taylorin the CBD, breaking ground in 18Q2.

Amazon has also expanded its footprint in the metro. In

early 2018, the e-commerce giant leased 84,000 SF atBroadway Tower in the CBD, which delivered in 18Q4.Just across the street, Amazon’s AWS Elemental division(formerly Elemental Technologies) opened a 101,000-SFoffice at the former Oregonian headquarters in 17Q3.

Creative office space continues to be in high demandamong tenants, developers, and investors. Many newerprojects are speculative. Some creative officedevelopments are built from the ground up, such as theField Office development in Guilds Lake, butrepositioning existing buildings has proven to be themore popular approach. The former Towne Storagebuilding in the Lloyd District was transformed into a100,000-SF office building, delivered in September2017. It was among the metro’s largest office projectsthat year. The asset secured software companyAutodesk as its sole tenant in May 2017, takingpossession in early 2018. In 18Q2, the property sold at arecord-breaking per-SF rate.

NET ABSORPTION, NET DELIVERIES & VACANCY


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VACANCY RATE

AVAILABILITY RATE


Page 4


12 MONTH NET ABSORPTION SF IN SELECTED BUILDINGS

3rd QtrBuilding Name/Address Submarket Bldg SF Vacant SF

1st Qtr 2nd Qtr 4th Qtr 12 Month

Net Absorption SF

CBD 177,800 10,475 16,799 17,106 0 0 167,325Broadway Tower

Sunset Corridor/Hills… 156,000 0 0 0 0 0 152,608First Tech Federal Credit Union

NW Close-In 117,591 23,416 30,330 24,404 0 0 94,175The Leland James

217 Corridor/Beaverton 89,964 0 0 0 0 0 89,964Kaiser Permanente

CBD 270,622 21,731 18,678 (82) 0 0 87,626Power + Light Building

Gateway 152,642 76,321 76,321 0 0 0 76,3218000 NE Tillamook St

CBD 208,520 106,728 0 0 0 0 67,750Meier & Frank Building

CBD/West Vancouver 77,000 15,203 11,624 4,219 10,696 0 61,797The Waterfront

Sunset Corridor/Hills… 67,152 23,010 0 0 0 0 44,142Rock Creek Corporate Ctr

Kruse Way 117,283 0 3,162 0 0 0 43,960Two Centerpointe

Guilds Lake 156,651 85,118 7,804 2,867 0 0 42,082Field Office

Tigard 41,070 0 0 0 0 0 41,070Tigard Corporate Center

Orchards 40,664 0 0 0 0 0 40,664USFS Building

CBD 133,000 0 0 34,845 0 0 39,845Meier & Frank Delivery Depot

CBD 215,983 6,086 1,182 34,706 (630) 0 36,6491515 Market Square

Airport Way 35,000 0 0 0 0 0 34,619Cascade Station

Vancouver Mall 54,481 13,330 (1,762) 12,656 0 0 34,413Thurston 500 Bldg

2,111,423 381,418 164,138 130,721 10,066 0 1,155,010Subtotal Primary Competitors

104,917,281 7,634,483 (8,286) (265,186) (90,564) 0 (671,819)Remaining Portland Market

107,028,704 8,015,901 155,852 (134,465) (80,498) 0 483,191Total Portland Market


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TOP OFFICE LEASES PAST 12 MONTHS

Building Name/Address Submarket Leased SF Tenant Name Tenant Rep Company Leasing Rep CompanyQtr

8000 NE Tillamook St Gateway 152,642 University of Western States Macadam Forbes, Inc. Newmark Knight FrankQ1 19

Wilsonville I-5 Corporate Center * Wilsonville 124,450 Rockwell Collins Norris & Stevens, Inc. Norris & Stevens, Inc.Q4 18

Vancouver Tech Center Cascade Park 90,000 Sigma Design, Inc - Fuller Group CREQ2 19

Mike Osborne Bldg Sunset Corridor/Hillsboro 51,328 - - Kidder MathewsQ4 18

Rock Creek Corporate Ctr Sunset Corridor/Hillsboro 46,020 Rohde & Schwarz USA JLL Newmark Knight FrankQ3 18

Cascade Station Airport Way 35,000 Vetsource JLL Capacity Commercial G…Q3 18

Columbia Business Center * St Johns/Cntrl Vancouver 33,153 Htg Inc Anderson E & L Fam… -Q4 18

District Office SE Close-In 31,692 Regus CBRE JLLQ1 19

3200 Yeon Bldg Guilds Lake 30,774 - - Colliers InternationalQ4 18

1515 Market Square CBD 30,307 East West College of Heal… Kidder Mathews;Mel… American Property Man…Q1 19

The Pettygrove Bldg. NW Close-In 30,000 AskNicely JLL JLLQ3 18

The 4400 Bldg * Vancouver Mall 29,527 Core Health & Fitness LLC JLL Fuller Group CREQ3 18

Tigard Triangle Commons Tigard 29,519 - - Colliers InternationalQ2 19

KOIN Tower * CBD 28,440 Evanta Cushman & Wakefiel… JLLQ4 18

Jacobs Center CBD 24,523 Jacobs Engineering Cushman & Wakefiel… Newmark Knight FrankQ1 19

Vancouver Tech Center Cascade Park 24,426 uBiome JLL -Q4 18

Crown Plaza CBD 24,021 Pacific Source Cushman & Wakefiel… Melvin Mark CompaniesQ1 19

Kimberly Center Hazel Dell/Salmon Creek 24,000 Area Agency on Aging of… - -Q2 19

Five Oaks West BP Sunset Corridor/Hillsboro 24,000 - - Macadam Forbes, Inc.Q1 19

AmberGlen Corporate Center Sunset Corridor/Hillsboro 23,801 - - JLLQ1 19

US Bancorp Tower & Plaza CBD 23,680 - - JLLQ2 19

Rock Creek Corporate Ctr Sunset Corridor/Hillsboro 23,024 - JLL Newmark Knight FrankQ3 18

The Leland James NW Close-In 22,831 Regus CBRE Newmark Knight FrankQ1 19

Kruse Woods Kruse Way 21,538 - - CBRE;JLLQ2 19

1010 Flanders CBD 21,086 Skanska Colliers International CBREQ2 19

Oregon Square Lloyd District 18,969 - - Capacity Commercial G…Q2 19

Lincoln Center 217 Corridor/Beaverton 18,267 Finity Communications Cushman & Wakefiel… Newmark Knight FrankQ3 18

Umpqua Bank Plaza CBD 17,772 Bulivant Hauser Bailey Cushman & Wakefiel… Cushman & Wakefield…Q2 19



7320 SW Hunziker St Tigard 16,615 - - JLLQ2 19

PacTrust Business Center Tigard 16,509 - - PacTrustQ2 19

Power + Light Building CBD 16,328 Geosyntec Consultants, Inc. JLL JLLQ3 18

Custom Blocks SE Close-In 16,200 Roundhouse Agency - Cushman & Wakefield…Q3 18

2100 SW River Pky * CBD 15,875 David Evans & Associates… - JLLQ3 18


Standard Insurance Center CBD 15,610 Cosgrave Vergeer Kester Norris & Stevens, Inc. Norris & Stevens, Inc.Q3 18



PACWEST CBD 15,420 Technolutions Inc - Cushman & Wakefield…Q4 18

*Renewal


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RentPortland Office

Relatively strong vacancy performance has contributed tothe sizable rent growth in Stumptown over the past fewyears. Annual rent growth has been positive for 29consecutive quarters. However, after peaking at over6.5% growth at the end of 2016, gains have sincedecelerated. As of May 2019, Portland rent gains werecomparable to the historical average, though metro gainsstill outpaced national performance. Despite widevariation in the past, in May 2019, rent growth wasroughly comparable for assets regardless of star rating.In the short term, Portland office rents are forecast to

further compress while remaining above nationalperformance.

Some growth can be attributed to top-dollar leases increative office and restored historic buildings. Forexample, in 2018, the 3 Star Power + Light buildingsigned two large leases for spaces each asking$38.50/SF FSG: Geosyntec Consultants leased 16,000SF, and Coinbase took 32,000 SF. Additionally, CableHill Partners leased about 10,000 SF at 12th & Morrisonfor $32/SF NNN.

MARKET RENT GROWTH (YOY)


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RentPortland Office

MARKET RENT PER SQUARE FOOT

4 & 5 STAR EXPENSES PER SF (ANNUAL)

Utilities Cleaning InsuranceMarket / Cluster Taxes Other Total

Portland $1.35 $0.47$0.67 $2.88 $3.96 $9.33

CBD $1.64 $1.00$0.97 $3.06 $5.84 $12.51

Clark County $1.64 $0.19$0.46 $2.06 $3.15 $7.50

I-5 Corridor $1.14 $0.25$0.64 $2.83 $3.10 $7.96

Lloyd District $1.19 $0.31$0.60 $3.01 $3.75 $8.86

Northeast $1.16 $0.25$0.45 $2.58 $3.47 $7.91

Northwest $1.35 $0.85$0.86 $2.58 $4.79 $10.43

Southeast $1.20 $0.28$0.96 $3.15 $2.82 $8.41

Southwest $1.13 $0.38$0.57 $2.22 $3.47 $7.77

Westside $1.16 $0.29$0.41 $3.69 $3.35 $8.90

Expenses are estimated using NCREIF, Trepp, IREM, and CoStar data using the narrowest possible geographical definition from Zip Code to region.


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RentPortland Office

3 STAR EXPENSES PER SF (ANNUAL)


Portland $1.17 $0.25$0.45 $2.43 $3.12 $7.42

CBD $1.59 $0.45$0.50 $2.01 $4.79 $9.34

Clark County $1.48 $0.17$0.42 $2.31 $2.83 $7.21

Columbia County $0.98 $0.22$0.37 $2.35 $2.47 $6.39

I-5 Corridor $1.11 $0.21$0.49 $2.96 $3.14 $7.91

Lloyd District $1.10 $0.22$0.45 $2.15 $3.38 $7.30

Northeast $1.08 $0.22$0.42 $2.53 $3.17 $7.42

Northwest $1.15 $0.37$0.41 $3.01 $3.05 $7.99

Southeast $1.13 $0.22$0.52 $2.30 $3.08 $7.25

Southwest $1.02 $0.25$0.40 $2.60 $2.73 $7.00

Westside $0.71 $0.26$0.38 $2.38 $2.15 $5.88

Yamhill County $0.96 $0.21$0.36 $2.01 $2.45 $5.99


1 & 2 STAR EXPENSES PER SF (ANNUAL)


Portland $1.11 $0.19$0.42 $2.34 $1.88 $5.94

CBD $1.58 $0.36$0.47 $2.31 $3.61 $8.33

Clark County $1.48 $0.16$0.38 $1.85 $1.70 $5.57

Columbia County $0.91 $0.19$0.35 $1.58 $1.07 $4.10

I-5 Corridor $1.04 $0.17$0.47 $2.64 $1.99 $6.31

Lloyd District $1.05 $0.18$0.43 $2.29 $2.40 $6.35

Northeast $1.04 $0.19$0.41 $2.50 $2.10 $6.24

Northwest $1.07 $0.25$0.38 $3.26 $1.70 $6.66

Skamania County $1.05 $0.19$0.41 $1.65 $2.16 $5.46

Southeast $1.10 $0.17$0.49 $2.19 $1.92 $5.87

Southwest $0.99 $0.21$0.38 $2.62 $1.73 $5.93

Westside $0.73 $0.19$0.36 $2.09 $1.35 $4.72

Yamhill County $0.93 $0.19$0.35 $1.96 $0 $3.43



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ConstructionPortland Office

Portland office deliveries reached a cycle peak in 2018,and a similarly large amount of inventory is underway in2019. Many of the largest projects are build-to-suit,limiting upward pressure on vacancy in the near term.While Portland’s supply growth is formidable, it trailsbehind that of West Coast metros like San Jose, Seattle,and San Francisco.

Build-to-suits make up a majority of the metro’s recentprojects. A massive 1-million-SF expansion at Nike’sBeaverton campus is underway, in addition to the412,000 SF delivered in 2018. The new 156,000-SFheadquarters of First Tech Federal Credit Uniondelivered in 18Q2. Several more build-to-suitdevelopments commenced over the past year andanticipate delivering in 2020. Following in Nike’sfootsteps, in 18Q3, Adidas broke ground on a 425,000-SF campus expansion, estimated at several hundredmillion dollars in construction costs. Adidas currentlyemploys about 1,700 people in Portland, and theexpansion will create room for another 1,000 workers. Inaddition, a new project for NW Natural is underway in theCBD. The utility company signed a 184,000-SF lease,committing to the relocation of their companyheadquarters from One Pacific Square. Third & TaylorDevelopment broke ground on the 10-story, 191,000-SF250 Taylor in 18Q2.

The two-building, 287,000-SF Field Office wasPortland’s largest speculative office project of 2018, withboth the East and West buildings delivering in the spring.

Located a block away from the NW riverfront, thedevelopment remains about 25% occupied and signedno new office tenants in 2018. In May 2019, the twobuildings sold for $118 million. Other large speculativeprojects have been concentrated in the CBD. BroadwayTower delivered in October 2018, including 178,000 SFof 5 Star office space, a 180-room hotel, and parking for237 vehicles. Amazon is Broadway Tower’s largesttenant, with 84,000 SF, and the building was almost fullypre-leased upon delivery. Additionally, Williams & Damedelivered the 203,000-SF Tanner Point in October 2018after its 17Q1 groundbreaking. The eight-story building’soffice space was entirely available for lease upondelivery, though that did not impede its sale for $76.6million shortly afterwards.

Given Portland’s strong fundamentals and startup-oriented workforce, there is robust demand for creativeoffice space, most often located in and around the CBD,Lloyd District, and SE Close-In submarkets. Thoughsome creative office projects are built from the groundup, like Field Office, more are renovations of existingproperties. The 69,000-SF Premier Gear & MachineWorks Building is an example of the latter. Formerlyowned and occupied by a manufacturer, the Guilds Lakeproperty was acquired by Sturgeon DevelopmentPartners as a redevelopment project in 2017. Midwaythrough conversion to a creative office property, withanticipated delivery in 20Q3, the Premier Gear &Machine Works Building remains fully available for lease.


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ConstructionPortland Office

DELIVERIES & DEMOLITIONS

SUBMARKET CONSTRUCTION

Average Building Size

RankUnder Constr

Under Construction Inventory

All ExistingSF (000) Pre-Leased SF (000)SubmarketNo. RankBldgs Pre-Leased %

1 Sunset Corridor/Hillsboro 1 1,004 1,003,585100% 1 34,4671,004 1

2 Hayden Island/Swan Island 3 425 141,667100% 1 14,802425 4

3 Lloyd District 2 200 100,2010.8% 8 24,5262 5

4 CBD 1 191 190,82599.2% 3 73,344189 2

5 SW Close-In 1 150 150,0001.8% 7 10,5863 3

6 SE Close-In 2 129 64,42441.5% 6 16,01953 7

7 Guilds Lake 1 69 68,6460% 9 20,7800 6

8 East Columbia Corridor 1 54 53,55154.3% 5 8,61129 8

9 Lake Oswego/West Linn 1 50 50,00083.0% 4 7,75042 9

10 Mall 205 1 3 3,0380% 9 5,5190 10

All Other 1 2 2,4230% 12,4110

Totals 15 2,276 151,75476.7% 18,0151,746


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Under Construction PropertiesPortland Office

Properties

15Square Feet

2,276,317Percent of Inventory

2.1%Preleased

76.7%

UNDER CONSTRUCTION PROPERTIES

UNDER CONSTRUCTION

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner

Dec-20161 SW Bowerman Dr

Nike North Expansion B…1,003,585 9 Aug-2019

Gerding Edlen

NIKE, Inc.1

Jun-2018915 SW 2nd Ave

250 Taylor190,825 10 Mar-2020

Third & Taylor Development LLC

-2

Aug-20185055 N Greeley Ave

Adidas Expansion180,000 5 Mar-2020

-

Adidas America3

Dec-2018817 SW 17th Ave

Canvas at Press Blocks150,000 8 May-2020

Urban Renaissance Group

-4



-

Adidas America5



-

Adidas America6

Aug-20185 SE Martin Luther King Jr…

5 MLK Office120,400 6 Dec-2019

Gerding Edlen

5 Mlk Rpo Llc7


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Under Construction PropertiesPortland Office

UNDER CONSTRUCTION

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner

Jul-2018525 SE Martin Luther King…

District Office90,778 6 Nov-2019

Beam

Beam8

Jan-20187 SE Stark St

7 Southeast Stark80,001 10 Sep-2019

Harsch Investment Properties

-9

Nov-20181715 NW 17th Ave

Premier Gear & Machine…68,646 2 Apr-2020

-

Sturgeon Development Partners,…10

Jun-201918613 SE Stark St

53,551 4 Jun-2020RKM Development, Inc.

-11

Jan-2019B Ave

Beacon Lake Oswego50,000 4 Aug-2019

10 Branch

-12

Nov-2018850 SE 3rd Ave

Tree Farm38,070 6 Aug-2019

Guerrilla Development

Guerrilla Development13

May-20188268 SE Yamhill St

3,038 2 Aug-2019-

Yeon K. Robinson14

Jan-2019415 Center St

2,423 2 Aug-2019-

-15


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SalesPortland Office

Portland’s structurally low vacancy rates, dynamiceconomy, and strong rent growth continue to heighten itsprofile as an investment market. Already, sales volume in2019 far outpaces the prior year’s performance for thefirst two quarters. Across Portland, office investment hasexceeded $1.25 billion for each of the past four years.Cap rates have held steady at around 6%, with nosignificant changes anticipated. Sales volume isconsistently concentrated in the CBD, which saw 42% oftotal office investment in 2018. Of the top 10 buyers in2018, Specht Properties is the only local firm to make thelist, due to its $52 million acquisition of One PacificSquare.

The $255 million sale of the 657,000-SF MontgomeryPark in April 2019 marks one of Portland’s largest-everoffice transactions. The sale also included a parkingstructure and a 36,000-SF warehouse. Buyers Unicoand Partners Group acquired the assets from the BillNaito Company. The new owners plan to repositionMontgomery Park and redevelop the other two sites, alllocated in the rapidly transforming NW Close-InSubmarket. Montgomery Park houses a long list of high-profile tenants. Just months earlier, the same buyers andseller traded the 182,000-SF The Galleria, located in theCBD, for $64.1 million ($352/SF) in December. Theproperty was 47% occupied at time of sale, with retailerTarget the sole tenant, and is also slated forrepositioning.

The past few months have seen the sales of two high-

profile, mostly vacant speculative developments deliveredin 2018. In May 2019, the two-building, 287,000-SFField Office development sold for $118 million ($411/SF),with its office portion only about 25% leased. In October,the 203,000-SF Tanner Point (formerly 9North) sold for$76.6 million ($378/SF) within a month of delivery, itsoffice portion fully vacant and available for lease. Despitetheir high-vacancy status, both properties were priced atleast 35% above the overall market rate.

The $178 million sale of the 411,000-SF Moda Tower($429/SF) in September was the high-water mark foroffice investment in 2018. Located in the CBD, UBSFinancial Services sold the building to American RealtyAdvisors and Unico Properties. Moda Tower last tradedin 2013 for $129 million. The property’s value increasedby almost 40% in about five and a half years.

In another notable trade of 2018, the $62.8 million($627/SF) April sale of the 100,000-SF Towne Storagewas one of the highest per-SF office trades to everoccur in Portland. CBRE Global Investors bought theproperty from Westport Capital Partners. The selleracquired the Lloyd District building in October 2015 for$9 million ($98/SF). Westport Capital Partners thenrenovated the century-old building, which leased bothartist studios and self-storage units at the time of sale,into creative office space. Midway through therenovation, Autodesk pre-leased the full building at$33/SF NNN. Towne Storage sold to CBRE just monthsafter the renovation completed and Autodesk moved in.


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SalesPortland Office

SALES VOLUME & MARKET SALE PRICE PER SF


Page 15

Sales Past 12 MonthsPortland Office

Sale Comparables

366Avg. Cap Rate

6.5%Avg. Price/SF

$301Avg. Vacancy At Sale

14.1%SALE COMPARABLE LOCATIONS

SALE COMPARABLES SUMMARY STATISTICS

Sales Attributes Low Average Median High

Sale Price $87,500 $8,416,428 $1,087,500 $255,000,000

Price Per SF $7.68 $301 $216 $1,096

Cap Rate 1.3% 6.5% 6.3% 9.9%

Time Since Sale in Months 0.3 6.3 6.4 12.0

Property Attributes Low Average Median High

Building SF 750 18,754 3,960 656,898

Stories 1 2 2 24

Typical Floor SF 483 7,011 2,935 103,279

Vacancy Rate At Sale 0% 14.1% 0% 100%

Year Built 1884 1957 1961 2018

Star Rating 2.2


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Sales Past 12 MonthsPortland Office

Property Name - Address Rating Yr Built Bldg SF Vacancy Price Price/SF

Property

Sale Date

Sale

Cap Rate

RECENT SIGNIFICANT SALES

-1 Montgomery Park1921 656,898 0% $255,000,000 $388

2701 NW Vaughn St4/1/2019 -

-2 Moda Tower1998 410,987 14.9% $176,250,000 $429

601 SW 2nd Ave9/28/2018 5.2%

-3 The 1201 Lloyd Building2000 225,057 1.9% $88,500,000 $393

1201 NE Lloyd Blvd1/31/2019 -

-4 Tanner Point2018 202,853 90.6% $76,625,000 $378

1250 NW 9th St10/18/2018 -

-5 The Leland James1973 117,591 19.9% $67,500,000 $574

2175 NW Raleigh St5/8/2019 -

-6 Field Office - West2018 156,651 54.3% $67,424,181 $430

2035 NW Front Ave5/1/2019 -

-7 R.L. Woolworth Building1969 198,135 0% $64,127,613 $324

1621-SW 1st Ave5/23/2019 -

-8 The Galleria1910 182,181 45.6% $64,100,000 $352

921 SW Morrison St12/13/2018 -

-9 Field Office - East2018 130,565 97.4% $50,575,819 $387

2030 NW 17th Ave5/1/2019 -

-10 Heartline Building2018 72,130 0% $48,500,000 $672

1241 NW Johnson St3/15/2019 5.6%

-11 The Yeon Bldg1911 126,885 13.3% $42,690,000 $336

522 SW 5th Ave10/2/2018 -

-12 8000 NE Tillamook St2006 152,642 50.0% $36,000,000 $2362/20/2019 -

-13 The 100 at Park Square1969 97,654 0% $32,372,387 $332

100 SW Market St5/23/2019 -

-14 Wells Fargo1999 103,279 0% $32,250,000 $312

23175 NW Bennett St7/12/2018 -

-15 The Atrium1986 169,319 27.6% $29,075,831 $172

15220 NW Greenbrier Pky9/6/2018 -

-16 1631 Building1900 67,306 18.1% $25,700,000 $382

1631 NW Thurman St10/25/2018 -

-17 Parkside Bldg A1984 136,000 0% $23,354,219 $172

15400 NW Greenbrier Pky9/6/2018 -

-18 Cornell West2000 116,350 7.3% $22,000,000 $189

1500 NW Bethany Blvd3/12/2019 8.0%

-19 The Water Tower1903 111,588 8.2% $21,793,105 $195

5331 SW Macadam Ave7/31/2018 -

-20 The Weatherly1928 63,608 6.0% $20,000,000 $314

516-540 SE Morrison St7/31/2018 -


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EconomyPortland Office

Healthy economic indicators drive the robust demand forcommercial real estate in Portland. Incomes andemployment growth far exceed the national average, andpopulation growth is strong. The metro is popular withmillennials looking for creative, affordable, eco-friendlyspaces close to transit hubs that allow them to takeadvantage of Portland’s high quality of life. Many newresidents come in search of a lower cost of living; of thetop 10 metros for net domestic migration over the pastfew years, half are California metros. The lack of a salestax in Oregon and the lack of an income tax inWashington also appeals.

Developers have identified the strong migration as ademand driver for new projects, many of which arehigher density. The Metro Council approved a 2,200-acre Urban Growth Boundary expansion in December2018, after declining a boundary expansion three yearsprior. Established in 1979, Portland’s Urban GrowthBoundary has since been expanded 36 times.

Intel and Nike, the metro’s largest non-government, non-healthcare employers, have both committed tosubstantial expansions of their corporate campuses,though each administered sizable job cuts in 2017. Inearly 2019, Intel announced plans for a 1.5-million-SFexpansion to D1X at its Ronler Acres campus inHillsboro. Previously, the multibillion-dollar D1Xdevelopment delivered 2.2 million SF in 2015, markingthe largest capital project in Oregon’s history. Intelanticipates its workforce increasing by 12%, or 1,748workers, by 2021. Nike’s history with the state has beensomewhat tenuous, but this changed after the legislature

agreed to lock in Nike’s state tax rate at current levels.The company’s commitment to the region has culminatedin the ongoing construction of 1.4 million SF of officespace at its Beaverton campus. Once completed, Nikewill occupy 350 acres of contiguous real estate, one ofthe largest corporate campuses in America.

Nike has attracted a skilled workforce—as well as anumber of competitors—to the metro. Dr. Martens,Columbia Sportswear, and Lacrosse Footwear all haveheadquarters in the region, and Adidas North America ismidway through a 425,000-SF office expansion of theirheadquarters. Under Armour moved into a former YMCAbuilding in Southwest Portland in 2017.

Amazon is another major contributor to Portland'seconomy and has invested around $2.8 billion intoOregon. After acquiring Portland-based ElementalTechnologies for $296 million in October 2015, thecompany has leased about 200,000 SF of office space inthe CBD, along with about 2 million SF of industrialspace in the greater Portland metro. Amazon’s industrialfootprint includes a sortation center in Hillsboroemploying 1,000 workers and fulfillment centers in NorthPortland (918,000 SF) and Troutdale (860,000 SF), bothdelivered in 18Q3, that respectively employ 1,000 and1,500 workers. The Seattle-based e-commerce giantchose to locate in Troutdale partially because it is anEnterprise Zone, a designated area for businesses to getfive-year tax abatements. The company will receivearound $9.6 million in abatements for this facility,contributing to the $213 million in total tax breaks for thecompany in Oregon.


Page 18


PORTLAND EMPLOYMENT BY INDUSTRY IN THOUSANDS

NAICS Industry Jobs LQ MarketUS USMarketUSMarket

Current Jobs Current Growth 10 Yr Historical 5 Yr Forecast

0.13%0.29%0.79%1.71%1.42%2.21%1.3130Manufacturing

0.42%0.43%1.16%1.64%1.19%2.28%1.0221Trade, Transportation and Utilities

0.31%0.60%0.86%1.68%0.12%0.53%0.9120 Retail Trade

0.40%0.44%1.00%1.19%1.27%0.91%1.073Financial Activities

0.76%0.96%-0.03%0.12%0.54%0.98%0.8149Government

0.27%1.24%1.99%4.02%3.30%5.50%1.277Natural Resources, Mining and Construction

0.32%0.76%2.08%2.99%1.97%2.90%0.9184Education and Health Services

0.86%1.26%2.61%3.51%2.48%1.99%1.1188Professional and Business Services

0.43%1.08%0.06%0.69%-0.13%1.65%1.126Information

0.40%0.51%2.46%3.04%2.26%1.85%0.9128Leisure and Hospitality

0.21%0.68%0.94%2.00%1.00%2.90%0.944Other Services

Total Employment 1,220 1.0 2.24% 1.62% 2.14% 1.41% 0.74% 0.48%

Source: Oxford Economics

LQ = Location Quotient


YEAR OVER YEAR JOB GROWTH


Page 19


DEMOGRAPHIC TRENDS

Current ChangeCurrent Level

Metro U.S.Metro U.S.Demographic Category

10-Year Change

Metro U.S. Metro U.S.

Forecast Change (5 Yrs)

Population 329,252,5632,506,524 1.1% 0.7% 1.3% 0.7% 1.1% 0.7%

Households 121,267,133953,786 1.0% 0.6% 1.3% 0.7% 1.0% 0.6%

Median Household Income $63,989$75,993 3.8% 3.6% 2.8% 2.3% 4.2% 4.3%

Labor Force 163,690,1411,342,808 1.8% 1.2% 1.2% 0.6% 0.7% 0.5%

Unemployment 3.8%4.1% 0.4% -0.1% -0.7% -0.6% - -


POPULATION GROWTH


LABOR FORCE GROWTH INCOME GROWTH


Page 20

SubmarketsPortland Office

PORTLAND SUBMARKETS


Page 21


SUBMARKET INVENTORY

12 Month Deliveries Under Construction

Bldgs SF (000) Percent Rank

Inventory

Bldgs SF (000) Percent RankBldgs SF (000) % Market RankSubmarketNo.

1 217 Corridor/Beaverton 4,237 2.0% 7 0 - - -234 1 90 2.1% 3

2 Barbur Blvd/Capitol Hwy 1,592 0.7% 33 0 - - -184 0 0 0% -

3 Cascade Park 2,947 1.4% 19 0 - - -127 2 6 0.2% 7

4 CBD 27,944 13.1% 1 1 191 0.7% 4381 2 381 1.4% 1

5 CBD/West Vancouver 3,010 1.4% 17 0 - - -256 1 77 2.6% 4

6 Clackamas/Milwaukie 3,346 1.6% 11 0 - - -392 0 0 0% -

7 Gateway 2,888 1.3% 23 0 - - -341 0 0 0% -

8 Hayden Island/Swan Island 1,421 0.7% 35 3 425 29.9% 296 0 0 0% -

9 Johns Landing 1,964 0.9% 27 0 - - -68 0 0 0% -

10 Kruse Way 2,886 1.3% 25 0 - - -76 0 0 0% -

11 Lloyd District 5,469 2.6% 5 2 200 3.7% 3223 0 0 0% -

12 Mall 205 1,369 0.6% 37 1 3 0.2% 6248 0 0 0% -

13 NE Close-In 1,797 0.8% 31 0 - - -201 2 56 3.1% 5

14 North Beaverton 3,201 1.5% 15 0 - - -158 0 0 0% -

15 NW Close-In 2,920 1.4% 21 0 - - -169 0 0 0% -

16 SE Close-In 3,332 1.6% 13 2 129 3.9% 5208 1 25 0.8% 6

17 St Johns/Cntrl Vancouver 1,947 0.9% 29 0 - - -199 0 0 0% -

18 Sunset Corridor/Hillsboro 13,959 6.5% 3 1 1,004 7.2% 1405 1 153 1.1% 2

19 Tigard 3,465 1.6% 9 0 - - -232 0 0 0% -

20 Tualatin 1,300 0.6% 39 0 - - -63 0 0 0% -

21 Wilsonville 1,288 0.6% 41 0 - - -60 0 0 0% -

22 Yamhill County 1,253 0.6% 43 0 - - -190 1 4 0.3% 8


Page 22

http://gateway.costar.com/Gateway/Redir/RedirectToProduct.aspx?productId=PPW&redirUrl=%2F..%2FMarket%2F%23%2Fsearch%2Fdetail%2Fsubmarket%2Ftype%2F0%2Fproperty%2F5%2Fgeography%2F2%3Fnested%3Dfalse























SUBMARKET RENT

Growth

Gross Asking Rent

Per SFSubmarketNo.

12 Month Asking Rent Annualized Quarterly Rent

RankRank GrowthRank

1 217 Corridor/Beaverton -11.7%17 3.7% 3$22.87 15

2 Barbur Blvd/Capitol Hwy -13.5%21 3.4% 7$20.72 19

3 Cascade Park -6.5%6 2.7% 13$27.51 2

4 CBD -5.6%1 1.5% 22$32.22 1

5 CBD/West Vancouver -10.4%18 3.0% 9$22.71 9

6 Clackamas/Milwaukie -8.7%15 2.4% 19$23.51 6

7 Gateway -12.2%14 2.5% 16$23.70 16

8 Hayden Island/Swan Island -10.6%8 2.8% 11$26.16 12

9 Johns Landing -15.6%5 3.8% 2$27.65 22

10 Kruse Way -10.0%2 3.4% 8$30.17 7

11 Lloyd District -10.5%4 2.7% 12$29.33 10

12 Mall 205 -8.3%20 2.0% 20$20.91 5

13 NE Close-In -11.6%9 2.5% 18$25.80 14

14 North Beaverton -14.1%11 2.5% 14$25.13 20

15 NW Close-In -10.5%3 3.7% 5$29.79 11

16 SE Close-In -8.1%7 1.5% 21$26.22 3

17 St Johns/Cntrl Vancouver -10.3%19 3.0% 10$22.35 8

18 Sunset Corridor/Hillsboro -8.2%13 2.5% 17$24.29 4

19 Tigard -12.9%16 3.6% 6$23.28 17

20 Tualatin -15.4%12 4.7% 1$24.81 21

21 Wilsonville -13.0%10 3.7% 4$25.48 18

22 Yamhill County -11.1%22 2.5% 15$20.51 13


Page 23
























SUBMARKET VACANCY & NET ABSORPTION

12 Month Net Absorption

Rank Construct. Ratio

Vacancy

SF % of InvSF PercentSubmarketNo. Rank

1 217 Corridor/Beaverton 544,384 12.8% 1.277,264 1.8% 321

2 Barbur Blvd/Capitol Hwy 82,206 5.2% -(1,045) -0.1% 1512

3 Cascade Park 183,797 6.2% 0.154,140 1.8% 715

4 CBD 3,280,621 11.7% -(128,605) -0.5% 2220

5 CBD/West Vancouver 187,271 6.2% 0.7105,489 3.5% 214

6 Clackamas/Milwaukie 69,365 2.1% -(11,203) -0.3% 184

7 Gateway 148,103 5.1% -62,614 2.2% 611

8 Hayden Island/Swan Island 21,992 1.5% -(5,242) -0.4% 172

9 Johns Landing 158,989 8.1% -(80,056) -4.1% 2017

10 Kruse Way 413,584 14.3% -(29,683) -1.0% 1922

11 Lloyd District 253,652 4.6% -(97,552) -1.8% 2110

12 Mall 205 34,495 2.5% -(2,650) -0.2% 166

13 NE Close-In 44,833 2.5% 0.928,116 1.6% 85

14 North Beaverton 86,560 2.7% -3,136 0.1% 147

15 NW Close-In 216,478 7.4% -73,925 2.5% 416

16 SE Close-In 193,846 5.8% 0.464,928 1.9% 513

17 St Johns/Cntrl Vancouver 32,175 1.7% -5,055 0.3% 133

18 Sunset Corridor/Hillsboro 600,645 4.3% -142,967 1.0% 19

19 Tigard 292,332 8.4% -22,012 0.6% 1118

20 Tualatin 142,395 11.0% -24,136 1.9% 1019

21 Wilsonville 6,513 0.5% -27,554 2.1% 91

22 Yamhill County 43,493 3.5% 0.216,197 1.3% 128


Page 24























Supply & Demand TrendsPortland Office

OVERALL SUPPLY & DEMAND

Net AbsorptionInventory

% of Inv Construction RatioSF SF Growth % Growth SFYear

2023 1,075,531 1.0% 0.8%950,721 1.1112,511,897

2022 1,082,128 1.0% 0.8%844,399 1.3111,436,366

2021 907,555 0.8% 0.5%499,853 1.8110,354,238

2020 1,181,695 1.1% 0.4%388,545 3.0109,446,683

2019 1,329,188 1.2% 0.9%981,634 1.4108,264,988

YTD 92,904 0.1% -0.1%(59,111) -107,028,704

2018 1,738,634 1.7% 1.0%1,034,848 1.7106,935,800

2017 415,846 0.4% 0.8%828,025 0.5105,197,166

2016 1,410,874 1.4% 1.3%1,393,765 1.0104,781,320

2015 201,200 0.2% 0.6%595,069 0.3103,370,446

2014 951,441 0.9% 1.8%1,877,413 0.5103,169,246

2013 33,354 0% 1.0%994,258 0102,217,805

2012 594,459 0.6% 1.1%1,103,469 0.5102,184,451

2011 255,310 0.3% 1.0%1,000,224 0.3101,589,992

2010 845,071 0.8% 0.6%643,034 1.3101,334,682

2009 766,412 0.8% -0.9%(895,445) -100,489,611

2008 1,255,986 1.3% 0.8%798,416 1.699,723,199

2007 1,029,618 1.1% 1.7%1,717,477 0.698,467,213

4 & 5 STAR SUPPLY & DEMAND



2023 1,083,721 3.1% 2.7%988,245 1.136,598,761

2022 1,089,249 3.2% 2.6%924,124 1.235,515,040

2021 923,701 2.8% 2.0%701,022 1.334,425,791

2020 742,383 2.3% 1.5%511,643 1.533,502,090

2019 1,322,434 4.2% 3.7%1,218,937 1.132,759,707

YTD 60,000 0.2% -0.2%(52,076) -31,497,273

2018 1,722,489 5.8% 3.7%1,171,727 1.531,437,273

2017 269,085 0.9% 1.2%348,370 0.829,714,784

2016 1,078,449 3.8% 3.4%997,714 1.129,445,699

2015 137,949 0.5% 0.8%213,680 0.628,367,250

2014 1,032,495 3.8% 3.9%1,108,858 0.928,229,301

2013 0 0% 1.4%368,248 027,196,806

2012 297,417 1.1% 1.6%427,710 0.727,196,806

2011 176,300 0.7% 1.5%392,331 0.426,899,389

2010 636,464 2.4% 1.7%459,589 1.426,723,089

2009 476,790 1.9% -0.2%(64,983) -26,086,625

2008 672,955 2.7% 1.5%396,457 1.725,609,835

2007 407,519 1.7% 1.6%401,506 1.024,936,880


Page 25

Supply & Demand TrendsPortland Office

3 STAR SUPPLY & DEMAND



2023 60,996 0.1% 0.1%58,319 1.045,371,445

2022 61,306 0.1% 0.1%33,423 1.845,310,449

2021 51,995 0.1% -0.1%(33,462) -45,249,143

2020 506,365 1.1% 0.4%190,384 2.745,197,148

2019 42,521 0.1% 0%21,785 2.044,690,783

YTD 37,060 0.1% 0.2%79,624 0.544,685,322

2018 37,915 0.1% -0.5%(234,867) -44,648,262

2017 169,461 0.4% 0.4%197,612 0.944,610,347

2016 368,691 0.8% 0.3%119,326 3.144,440,886

2015 103,367 0.2% 0.6%284,576 0.444,072,195

2014 74,674 0.2% 1.5%670,878 0.143,968,828

2013 68,249 0.2% 0.9%394,725 0.243,894,154

2012 276,748 0.6% 1.0%452,268 0.643,825,905

2011 48,394 0.1% 0.9%411,646 0.143,549,157

2010 214,863 0.5% 0.4%176,316 1.243,500,763

2009 271,787 0.6% -0.6%(245,726) -43,285,900

2008 519,556 1.2% 0.5%198,768 2.643,014,113

2007 575,777 1.4% 1.7%717,482 0.842,494,557

1 & 2 STAR SUPPLY & DEMAND



2023 (69,186) -0.2% -0.3%(95,843) -30,541,691

2022 (68,427) -0.2% -0.4%(113,148) -30,610,877

2021 (68,141) -0.2% -0.5%(167,707) -30,679,304

2020 (67,053) -0.2% -1.0%(313,482) -30,747,445

2019 (35,767) -0.1% -0.8%(259,088) -30,814,498

YTD (4,156) 0% -0.3%(86,659) -30,846,109

2018 (21,770) -0.1% 0.3%97,988 -30,850,265

2017 (22,700) -0.1% 0.9%282,043 -30,872,035

2016 (36,266) -0.1% 0.9%276,725 -30,894,735

2015 (40,116) -0.1% 0.3%96,813 -30,931,001

2014 (155,728) -0.5% 0.3%97,677 -30,971,117

2013 (34,895) -0.1% 0.7%231,285 -31,126,845

2012 20,294 0.1% 0.7%223,491 0.131,161,740

2011 30,616 0.1% 0.6%196,247 0.231,141,446

2010 (6,256) 0% 0%7,129 -31,110,830

2009 17,835 0.1% -1.9%(584,736) -31,117,086

2008 63,475 0.2% 0.7%203,191 0.331,099,251

2007 46,322 0.1% 1.9%598,489 0.131,035,776


Page 26

Rent & VacancyPortland Office

OVERALL RENT & VACANCY

Market Rent

Per SF Index % Growth Vs Hist PeakYear

Vacancy

SF Percent Ppts Chg

2023 134 0.8% 7.5%$28.51 9,793,983 8.7% 0%

2022 133 1.0% 6.6%$28.28 9,665,090 8.7% 0.1%

2021 132 1.1% 5.6%$28.00 9,423,184 8.5% 0.3%

2020 130 1.9% 4.4%$27.68 9,011,243 8.2% 0.6%

2019 128 2.5% 2.5%$27.18 8,213,467 7.6% 0.2%

YTD 126 1.0% 1.0%$26.79 8,015,901 7.5% 0.1%

2018 125 3.6% 0%$26.53 7,863,886 7.4% 0.6%

2017 121 4.4% -3.5%$25.60 7,134,640 6.8% -0.4%

2016 115 6.7% -7.6%$24.51 7,572,443 7.2% -0.1%

2015 108 5.7% -13.4%$22.98 7,555,334 7.3% -0.4%

2014 102 5.8% -18.1%$21.74 7,949,203 7.7% -1.0%

2013 97 2.7% -22.5%$20.55 8,875,175 8.7% -0.9%

2012 94 1.9% -24.6%$20.01 9,836,079 9.6% -0.6%

2011 92 0% -26.0%$19.63 10,345,089 10.2% -0.8%

2010 93 -3.0% -26.0%$19.64 11,090,003 10.9% 0.1%

2009 95 -4.7% -23.7%$20.24 10,887,966 10.8% 1.6%

2008 100 0.4% -20.0%$21.23 9,226,109 9.3% 0.3%

2007 100 5.9% -20.3%$21.15 8,768,539 8.9% -0.9%

4 & 5 STAR RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2023 136 0.8% 8.4%$34.47 3,500,515 9.6% 0%

2022 135 0.9% 7.6%$34.20 3,405,400 9.6% 0.2%

2021 133 1.1% 6.6%$33.89 3,240,625 9.4% 0.4%

2020 132 1.7% 5.4%$33.52 3,018,299 9.0% 0.5%

2019 130 3.6% 3.6%$32.95 2,787,738 8.5% 0%

YTD 128 2.3% 2.3%$32.52 2,796,317 8.9% 0.3%

2018 125 3.1% 0%$31.80 2,684,241 8.5% 1.4%

2017 121 6.7% -3.0%$30.83 2,133,479 7.2% -0.3%

2016 114 6.2% -9.2%$28.89 2,212,764 7.5% 0%

2015 107 3.3% -14.5%$27.19 2,132,029 7.5% -0.3%

2014 104 7.7% -17.2%$26.33 2,207,760 7.8% -0.6%

2013 96 1.1% -23.1%$24.46 2,284,123 8.4% -1.4%

2012 95 2.1% -23.9%$24.20 2,652,371 9.8% -0.6%

2011 93 -1.1% -25.5%$23.69 2,782,664 10.3% -0.9%

2010 94 -1.7% -24.7%$23.95 2,998,695 11.2% 0.4%

2009 96 -4.1% -23.4%$24.36 2,821,820 10.8% 1.9%

2008 100 0.7% -20.1%$25.41 2,280,047 8.9% 0.9%

2007 99 8.6% -20.7%$25.22 2,003,549 8.0% -0.1%


Page 27

Rent & VacancyPortland Office

3 STAR RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2023 134 0.8% 6.2%$27.36 4,230,580 9.3% 0%

2022 133 1.0% 5.4%$27.14 4,228,294 9.3% 0%

2021 131 1.1% 4.3%$26.88 4,200,796 9.3% 0.2%

2020 130 1.8% 3.2%$26.58 4,115,713 9.1% 0.6%

2019 128 1.4% 1.4%$26.12 3,799,876 8.5% 0%

YTD 126 0% 0%$25.76 3,736,576 8.4% -0.1%

2018 126 3.8% 0%$25.76 3,779,140 8.5% 0.7%

2017 121 3.3% -3.6%$24.82 3,480,734 7.8% -0.2%

2016 117 7.2% -6.7%$24.04 3,534,509 8.0% 0.5%

2015 110 7.1% -12.9%$22.43 3,285,144 7.5% -0.4%

2014 102 5.0% -18.7%$20.95 3,466,353 7.9% -1.4%

2013 98 4.3% -22.5%$19.96 4,062,557 9.3% -0.8%

2012 93 2.2% -25.7%$19.13 4,389,033 10.0% -0.5%

2011 91 1.1% -27.4%$18.71 4,564,553 10.5% -0.8%

2010 90 -3.8% -28.2%$18.50 4,927,805 11.3% 0%

2009 94 -6.0% -25.3%$19.24 4,889,258 11.3% 1.1%

2008 100 0.6% -20.6%$20.46 4,371,745 10.2% 0.6%

2007 99 4.4% -21.0%$20.35 4,050,957 9.5% -0.8%

1 & 2 STAR RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2023 133 0.9% 8.1%$23.75 2,062,888 6.8% 0.1%

2022 132 1.1% 7.2%$23.54 2,031,396 6.6% 0.2%

2021 130 1.3% 6.1%$23.29 1,981,763 6.5% 0.4%

2020 129 2.2% 4.7%$23.00 1,877,231 6.1% 0.8%

2019 126 2.5% 2.5%$22.51 1,625,853 5.3% 0.7%

YTD 124 0.8% 0.8%$22.13 1,483,008 4.8% 0.3%

2018 123 4.1% 0%$21.96 1,400,505 4.5% -0.4%

2017 118 2.9% -4.0%$21.09 1,520,427 4.9% -1.0%

2016 115 6.5% -6.7%$20.49 1,825,170 5.9% -1.0%

2015 108 7.2% -12.4%$19.23 2,138,161 6.9% -0.4%

2014 100 4.4% -18.3%$17.94 2,275,090 7.3% -0.8%

2013 96 2.5% -21.7%$17.19 2,528,495 8.1% -0.8%

2012 94 1.0% -23.6%$16.77 2,794,675 9.0% -0.7%

2011 93 -0.3% -24.4%$16.60 2,997,872 9.6% -0.5%

2010 93 -3.4% -24.1%$16.66 3,163,503 10.2% 0%

2009 97 -3.4% -21.5%$17.25 3,176,888 10.2% 1.9%

2008 100 -0.5% -18.7%$17.85 2,574,317 8.3% -0.5%

2007 101 4.6% -18.3%$17.94 2,714,033 8.7% -1.8%


Page 28

Sale TrendsPortland Office

OVERALL SALES

Completed Transactions (1)

Turnover Avg Price/SFDeals VolumeYear

Market Pricing Trends (2)

Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate

2023 -- - -- 206- $327.51 6.1%

2022 -- - -- 203- $321.95 6.1%

2021 -- - -- 199- $315.84 6.1%

2020 -- - -- 195- $309.68 6.0%

2019 -- - -- 189- $299.73 6.0%

YTD $926.3 M165 2.8% $346.27$10,874,470 1856.1% $293.73 5.9%

2018 $1,364 M375 5.6% $258.33$5,670,829 1796.7% $283.79 6.0%

2017 $1,544 M337 6.4% $254.30$6,584,983 1736.2% $274.74 6.0%

2016 $1,255 M397 6.2% $215.40$4,299,309 1626.3% $257.70 6.1%

2015 $1,297 M321 5.9% $235.63$5,202,120 1526.6% $240.34 6.3%

2014 $784.8 M291 5.4% $151.05$3,602,464 1387.2% $219.27 6.5%

2013 $582.1 M240 3.8% $153.23$2,908,118 1277.2% $202.09 6.8%

2012 $346.4 M181 2.9% $142.61$2,588,741 1208.2% $189.89 7.0%

2011 $308.0 M161 2.4% $181.17$2,794,289 1147.9% $180.43 7.2%

2010 $288.3 M108 1.9% $159.28$3,185,241 1027.2% $161.25 7.8%

2009 $161.0 M108 1.8% $111.23$1,604,735 888.0% $139.71 8.7%

2008 $741.5 M184 3.9% $192.97$4,279,718 1007.1% $158.61 8.2%

(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.

(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

4 & 5 STAR SALES





2023 -- - -- 205- $412.92 5.8%

2022 -- - -- 201- $406.14 5.8%

2021 -- - -- 198- $398.71 5.8%

2020 -- - -- 194- $391.33 5.7%

2019 -- - -- 188- $379.14 5.7%

YTD $344.5 M6 2.6% $420.97$57,416,667 1856.8% $372.34 5.6%

2018 $414.3 M8 3.8% $344.63$59,182,992 1796.1% $360.39 5.7%

2017 $820.7 M14 9.1% $304.23$58,618,308 1765.6% $354.40 5.6%

2016 $433.8 M11 5.9% $301.93$72,098,332 1654.9% $332.32 5.8%

2015 $874.8 M15 10.6% $303.05$71,822,250 1545.6% $309.77 5.9%

2014 $151.8 M9 2.7% $208.52$25,159,005 1397.2% $281.24 6.1%

2013 $235.2 M7 4.0% $213.97$33,602,626 1296.9% $259.33 6.4%

2012 $143.3 M8 3.5% $202.50$28,656,971 1218.8% $243.34 6.6%

2011 $170.1 M4 3.5% $355.08$85,067,112 1157.6% $232.47 6.8%

2010 $163.6 M5 3.1% $197.76$32,712,235 1039.0% $207.52 7.4%

2009 $15.4 M5 2.4% $57.93$3,844,191 89- $178.85 8.2%

2008 $362.5 M8 5.6% $253.67$72,379,201 1007.0% $201.73 7.8%




Page 29

Sale TrendsPortland Office

3 STAR SALES





2023 -- - -- 209- $304.17 6.2%

2022 -- - -- 206- $298.90 6.2%

2021 -- - -- 202- $293.14 6.2%

2020 -- - -- 198- $287.33 6.1%

2019 -- - -- 191- $278.12 6.1%

YTD $464.3 M33 3.3% $330.09$25,737,582 1876.5% $272.29 6.0%

2018 $621.3 M80 5.9% $258.03$9,233,057 1806.8% $261.62 6.1%

2017 $520.3 M73 5.2% $232.41$8,222,975 1736.3% $251.59 6.1%

2016 $500.0 M90 6.0% $192.91$6,418,475 1616.4% $234.70 6.3%

2015 $192.5 M66 3.1% $163.37$3,643,026 1516.4% $219.69 6.4%

2014 $452.7 M78 7.4% $145.73$7,272,116 1387.3% $200.80 6.6%

2013 $196.6 M50 3.4% $133.93$4,676,834 1287.0% $185.32 6.9%

2012 $130.5 M44 2.4% $133.43$4,194,396 1208.2% $174.52 7.1%

2011 $80.3 M63 2.0% $114.87$2,499,876 1137.9% $164.76 7.4%

2010 $60.6 M20 1.1% $137.06$4,216,155 1017.8% $147.24 8.0%

2009 $92.3 M31 1.6% $131.19$3,162,259 888.0% $127.82 8.9%

2008 $196.5 M46 2.9% $159.27$4,977,196 1007.4% $145.33 8.4%



1 & 2 STAR SALES





2023 -- - -- 205- $269.70 6.4%

2022 -- - -- 201- $265.01 6.3%

2021 -- - -- 197- $259.81 6.3%

2020 -- - -- 193- $254.43 6.3%

2019 -- - -- 187- $245.84 6.2%

YTD $117.5 M126 2.2% $261.03$1,910,713 1835.5% $240.44 6.2%

2018 $328.3 M287 7.0% $196.64$1,976,526 1786.7% $233.76 6.2%

2017 $202.8 M250 5.5% $178.76$1,287,785 1696.3% $222.84 6.3%

2016 $320.8 M296 6.8% $178.63$1,545,831 1606.2% $211.00 6.4%

2015 $229.2 M240 5.5% $159.50$1,246,473 1496.8% $195.81 6.6%

2014 $180.2 M204 4.9% $132.44$1,207,446 1367.1% $179.57 6.7%

2013 $150.4 M183 4.2% $122.04$993,233 1257.4% $164.99 7.0%

2012 $72.6 M129 2.9% $97.67$748,424 1188.2% $154.81 7.3%

2011 $57.5 M94 2.1% $110.27$749,305 1128.1% $147.34 7.5%

2010 $64.1 M83 1.8% $118.57$902,597 1006.4% $131.91 8.1%

2009 $53.3 M72 1.6% $111.46$795,989 878.0% $114.95 9.0%

2008 $182.5 M130 3.8% $154.69$1,412,519 1006.9% $131.60 8.5%




Page 30

portland market - mike nye, siormikenye.capacitycommercial.com/.../costarofficeq2-2019.pdffive oaks...

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