Demand Pushes Vacancy to Among the Nation’s Lowest

Lewis says the market has absorbed the first round but many are anticipating round two.

PORTLAND, OR—A relatively lower cost of doing business compared to other West Coast metros and a growing population of young professionals is driving corporate growth in the Portland metro. All signs point to a healthy office market, characterized by low vacancy and high demand, according to a second quarter 2018 office report by Marcus & Millichap.

Booming healthcare and technology sectors are bolstering demand for office space throughout the market, keeping vacancy tight. Companies including Amazon and Google are expanding footprints and healthcare firms have added more than 13,400 employees during the past 12 months. Elevated demand has pushed the vacancy rate to one of the lowest among the major metros in the first quarter while vacancy in medical office buildings hovered in the tight 3% range.