Average Rental Rate
12-Month Rent Growth
SF Under Construction
217 Corridor / Beaverton
The 217 Corridor/Beaverton Submarket in Portland is a midsized submarket that contains around 2.7 million SF of office space. The vacancy rate has risen moderately over the past 12 months, and at 16.3%, the rate was above the long-term average as of 2023Q2.
Net absorption has tallied about -52,000 SF over the past year. Over a longer timeframe, the submarket has been stagnant: Average annual net absorption has been negligible over the past five years. Rents increased by 2.1% over the past year, firmly positive but well below the 3.7% average change over the past decade.
While tenants continue to reevaluate space needs, new supply won't exacerbate any existing slack. CoStar isn't tracking any office construction in this submarket at present. This will further prolong the lack of development, which has now lasted more than three years.
This has been a somewhat active submarket for office transactions in recent years on average.
Office rents in 217 Corridor/Beaverton run for about $24.00/SF gross, which is below the metro average. The submarket's most prominent office slice commands a discount as well, albeit somewhat less pronounced. Space rated 1 & 2 Star here runs for about $22.00/SF, a bit below the $23.00/SF rate in the metro.
Rents in the submarket grew by a moderate 2.1% year over year as of 2023Q2, which was about the same as the annualized average growth rate over the past three years.
No significant leasing activity was reported this quarter.