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/.
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