On the positive side (literally and figuratively), despite two straight quarters of negative absorption, Portland's year-to-date totals are still in positive territory. Albeit by a paltry 28,000 sf, it's a feat which few have matched. Grubb & Ellis is reporting positive YTD absorption for only 10 markets across the country through the third quarter.
Vacancy in Portland's 15-million-sf CBD jumped from 6.8% to 8%, the highest it's been in almost a decade, according to the report. Class A vacancy hit 8.3%, up more than two full points from the second quarter. Negative absorption in the CBD is expected to continue through mid-2002. It was (137,720) sf in the third quarter, mostly attributable to technology-related companies like ITT Tech, which vacated 30,000-sf at ODS Tower, and Preview Systems, which tossed 20,000 sf back at 1000 Broadway.
In the Sunset Corridor, sublease space and new development has helped launch vacancy rates past the 20% mark to 22.6% after topping out at 19.3% in the second quarter. It's the same all over the Westside. Of the 135,113 sf of sublease space that was added to the entire Portland-Vancouver market in the third quarter, nearly all of it came from the Sunset Corridor and Kruse Way/Washington Square markets, according to Grubb & Ellis.
No substantial signs of a recovery are expected until sometime in 2002, according to the report.
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