Average Rental Rate
12-Month Rent Growth
SF Under Construction
Wilsonville's peripheral location benefits from proximity to both the I-5 and I-205 corridors. Despite a history of solid vacancy and rent performance, inventory in the last decade has increased minimally, by 1.7%. This includes just six smaller buildings since the start of 2010. The most recent of these is the Coffee Creek Logistics Center—a 110,000-SF facility completed in 22Q3—which was pre-leased. Aside from Coffee Creek, however, the most recent new construction was in 2015. Part of this can be attributed to land constraints.
Protected wetlands lie on the city's west side on what would be prime, open industrial ground. In addition, high value farmland and luxury residential acreage parcels dot the rest of the surrounding landscape. Geographically speaking, Wilsonville won't be able to expand on an industrial level to the same degree that its peer submarkets can. Thus, limited new supply in the face of steady absorption has contributed to a vacancy compression pattern, with the current mark equal to 1.2%.
Despite being smaller in overall inventory size, Wilsonville has several major distribution, food processing and bottling plants. The submarket is home to a 517,000-SF facility leased by Rite Aid that recently sold in a large portfolio deal. Other national tenants in the area are food- and beverage-oriented, including Pacific Foods (508,000 SF), Sysco (269,000 SF), and Southern Glazer's Wine and Spirits (298,000 SF). Swire Coca-Cola, USA also has a bottling and distribution facility located off of SW Barber St.
Thus, synergistic packaging and smaller logistics support operations have driven leasing here at times. Recent examples include Orora taking 36,000 SF at Wilsonville Business Center along the 95th Avenue corridor in 22Q4. Tight fundamentals, coupled with several larger, structural tenants have driven market rent growth, which is projected to run above metro trends in coming quarters. Already, 6.2% gains year-over-year are outperforming the submarket's five-year average of 6.3%.
No significant rental rate activity was reported this quarter.
No significant leasing activity was reported this quarter.