Portland investors in the multifamily space are overlooking elevated interest rates — at least they did during the second quarter of 2025. That's justified by sales volume surging by 150 percent year-over-year in the three months through June, according to a market report from Colliers.
"While cap rates remained above 6.0% for a second straight year, Portland also saw a number of large properties change hands, showing that hesitancy among investors looking to enter the market or expand their portfolios is beginning to wane," the CRE firm said.
The largest in terms of volume was PGIM, Inc.'s $115 million purchase of 198-unit Merrill Gardens. Taking second and third place were Berkshire and Pacific Urban Investors, LLC, which acquired 265-unit and 304-unit properties for $88 million and $76.7 million, respectively.
Recommended For You
To other categories, occupancy was strong, up 160 basis points from the previous 12 months to 95.6 percent. Central Portland saw the biggest individual gain among submarkets, increasing by 2.7 percent.
Net absorption rebounded after a slower first quarter, which saw just 1,185 units. The second quarter total doubled to 2,340 units, which is also up from the 2,120 posted in the previous 12 months. Importantly, for Portland multifamily landlords — supply is not keeping up with demand. Just 853 units were delivered in the second quarter, down from the 1,577 posted 12 months ago.
Average asking rents saw a modest one percent increase to $1,768, which Colliers attributed to the strong performance in Central Portland, whose prices soared by 6.3 percent.
Overall, Colliers sees sunny days ahead for multifamily landlords in the Rose City.
"While renter demand is showing strong recovery, new supply and units under construction continue negative trends," it wrote, while predicting "this, paired with strong absorption numbers, foretells a dramatic rent increase in the near future if the supply deficit is not swiftly addressed."
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
Anthony Russo
Anthony Russo has been contributing to GlobeSt. since July 2024. Along with CRE, his financial background expands to capital markets, the economy, and consumer issues. Previously, he has written for CapitalWatch and was a senior reporter for The US Sun.
