Average Rental Rate
12-Month Rent Growth
SF Under Construction
The CBD/West Vancouver Submarket in Portland is a midsized submarket that contains around 3.4 million SF of office space. The vacancy rate has been essentially unchanged over the past year, but at 5.7%, the rate was a bit below the 10-year average as of 2023Q2.
Net absorption over the past year has tallied about 70,000 SF, moderately above the five-year average of 49,000 SF. Rents increased by 1.7% over the past year, firmly positive but well below the 3.1% average change over the past decade.
There is about 160,000 SF underway in CBD/West Vancouver, the most space under construction in more than a decade. This represents a continuation of new development in the submarket, which had already seen inventory expand by roughly 3.9% over the past three years.
CBD/West Vancouver is among the top 10 office submarkets in Portland by inventory, and the largest office submarket on the Washington side of the Columbia River. Office product totals 3.4 million SF, but nearly 40% of this supply is rated 1 & 2 Star. However, this balance will shift over the coming years.
Office rents in CBD/West Vancouver run for about$27.00/SF gross, a moderate discount to the metroaverage. That difference doesn't exist for the submarket'smost prominent slice, however. Space rated 1 & 2 Starhere runs for about $23.00/SF, right in line with the metro.
Rents in the submarket grew by a moderate 1.7% yearover year as of 2023Q2, which was about the same asthe annualized average growth rate over the past threeyears.
No significant leasing activity was reported this quarter.