Retail Redevelopment buoys Investor Demand in Portland's Infill Areas

PORTLAND, OR— The effects of the nationwide credit crunch and housing downturn have gradually trickled into Portland’s economy, weighing on retail fundamentals in recent quarters, though healthy long-term projections should support the metro in the long term, according to a third-quarter Retail Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.

Renewal projects under way downtown are expected to transform the area into a live/work hub with office, residential and retail space.


“Through year end, single-tenant sales activity will likely be driven by investors targeting fast-food restaurants, as this asset type is expected to fare well during the economic downturn,” says Tony Cassie, regional manager of the Portland office of Marcus & Millichap.

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


· Deliveries are forecast to total approximately 1.3 million square feet of retail space in 2008.
· Vacancy is projected to end the year at 6.5 percent.
· Asking rents are expected to advance 3.4 percent to $20.34 per square foot.
· Effective rents will gain 2.9 percent to $18.18 per square foot.
· The educational and health services segment led the metro in payroll expansion during the last year with the creation of 3,900 new spots through the second quarter, a 3.1 percent rise.

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

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