Average Rental Rate
12-Month Rent Growth
SF Under Construction
Sunset Corridor / Hillsboro
Sunset Corridor/Hillsboro is a very large submarket, containing roughly 28.6 million SF of industrial space. Flex is the predominant subtype here, which is uncommon. Logistics is typically the most represented subtype, as is the case in the broader metro area. But in Sunset Corridor/Hillsboro, logistics facilities contain approximately 8.5 million SF, while 10.3 million SF can be found in flex. Large concentrations of flex space often indicate the presence of high tech or advanced manufacturing companies.
Vacancy, currently 2.1%, has declined over the past year, but there is little room left for further tightening. Net absorption over the past year came in at about 2.6 million SF, substantially above the five-year average.
Rents grew at a strong clip of 5.7% over the past year. While undoubtedly a solid result, this does represent the weakest rent growth observed in Sunset Corridor/Hillsboro in several years. Industrial rents in Sunset Corridor/Hillsboro run for about $14.30/SF, a considerable premium to the metro average. That difference doesn't exist for the submarket's most prominent subtype, however. Flex space here runs for about $16.80/SF, right in line with the metro.
The 11,000 SF currently underway in Sunset Corridor/Hillsboro is the lowest construction count in more than three years. This is a continuation of new development in the submarket, which had already seen 3.6 million SF deliver over the past three years, representing an inventory expansion of 14.5%.
No significant rental rate activity was reported this quarter.
No significant leasing activity was reported this quarter.