Tenants and Investors Target Downtown Portland, OR Office Buildings

PORTLAND, OR— The effects of the housing slump and the credit crisis have begun to hit the Portland economy, resulting in job losses and a modest weakening of office fundamentals, according to a second-quarter Office Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

Still, employment expansion in the professional and business services segment is bolstering demand for office space. (The 384,000-sf 200 Market Building, top right photo)

“Employers have targeted Class A space in the bustling city core, though the small amount of available product has prompted developers to turn to revitalization efforts in order to meet the demand,” says Tony Cassie, regional manager of the Portland office of Marcus & Millichap.

(The 125,437-SF 224 Corporate Center, middle left photo)

Following are some of the most significant aspects of the Portland Office Research Report:

· Developers are forecast to bring 335,000 square feet of office space online in 2008, up from 135,000 square feet last year.
· Vacancy is projected to end the year at 11.8 percent.
· Asking rents are projected to rise 1.8 percent to $22.05 per square foot.
· Effective rents will edge up 1.5 percent to $18.23 per square foot.
· The median price has appreciated 12 percent year over year to $163 per square foot, due to a mix of more expensive, higher-quality properties changing hands.

(The 329,127-SF Congress Center, bottom right photo)

For a copy of the complete Portland Office Research Report, as well as reports on other markets nationwide, visit our website at http://www.marcusmillichap.com/.

Press Contact: Stacey Corso
Communications Department
(925) 953-1716