PORTLAND-The Portland apartment market is back in equilibrium, says the latest report by Cushman & Wakefield Financial Services. The division’s June Market Beat report says vacancy rates have dropped for the first time since the mid-1990s and rents for 2001 are expected to rise after nearly two years of remaining relatively flat.

As a result, after flooding the market with 32,000 new units between 1992 and 2000, Portland is once again becoming more attractive to multifamily investors and developers. Backing that up was this week’s news about Pacific Property Company agreeing to acquire the 156-unit Panorama West Apartments in Tigard, OR for $6.15 million, and putting out word it is looking for more.

Back to the forecast, multifamily completions are predicted to total 10,914 units between 2000 and 2002 in the Portland-Vancouver Metro area, with an average annual absorption of 3,940 units, according to the report. If the scenario holds true, vacancies would drop from 7.1% in 2000 to 5.5% by 2002, while rents would rise 3.1% in 2001 (to $685 per month) and another 3.5% in 2002. Sales prices, which dropped by 8.57% in 2000 to an average of $54,247 per unit from $59,988 per unit in 1999, are expected to rise 3.5% in 2001, according to the report.

On the general economic front, Oregon’s Office of Economic Analysis forecast calls for Oregon to outperform the US with growth of 1.4% in 2001 and 2.1% in 2002, according to the report. The Portland metropolitan area, which typically outperforms the state as a whole, saw 1.1% job growth over the past year. The lone bright spot was electronics manufacturing, which grew by 11%. The services sector, a primary tenant of office space, generated only 6,800 additional jobs (2.4% growth) in 2000.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.