Average Rental Rate
12-Month Rent Growth
SF Under Construction
The North Beaverton Submarket in Portland is a midsized submarket that contains around 3.3 million SF of office space. The vacancy rate has fallen significantly over the past year, and at 5.3%, the rate was a bit below the 10-year average as of 2023Q2.
Net absorption over the past year has tallied about 260,000 SF. That's a welcome reversal of the longer- term trend: Over the past five years, the submarket has posted negative net absorption of -7,200 SF per year on average. Rents increased by 1.6% over the past year, firmly positive but well below the 3.5% 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. Moreover, the recent trend would suggest that the inventory is likely to shrink moving forward, if anything. The office stock has contracted over the past 10 years by virtue of demolition activity. Not a single new project has delivered over that time.
This has been a somewhat active investment market over the past few years. North Beaverton typically sees a number of deals close in a given year.
Office rents in North Beaverton run for about $28.00/SF gross, which is more or less in line with the metro average. The same is true for 3 Star space, the submarket's most prominent office slice, which at $27.00/SF is right in line with the metro average for that slice.
Rents in the submarket grew by a moderate 1.6% 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.