We asked the experts.
The end of one year is always a good time to look at the beginning of another and see what’s on the horizon.
To size up what could be ahead in the Portland real estate scene, we reached out to some local experts who shined a little forecasting light in the areas of residential, industrial, office and multifamily real estate.
Three highlights from what they shared are below here, but find even more from them, including some insight from Tom Brenneke, president of Guardian Real Estate Services LLC, in tomorrow’s print edition of the Portland Business Journal. (Subscribers will also have access to it online tomorrow as well.)
Jerry Matson, vice president, Colliers International (Industrial): “The fact that we have delivered 2.5 million square feet in the last two years is fairly misleading, as a vast majority has been in nine large buildings catering to only the largest tenants in the market. We really haven’t even begun to address the lack of supply we are feeling in the broader market, as smaller local/regional companies look for space to expand into.”
Jenelle Isaacson, owner of Living Room Realty (Residential): “ The east side has pent-up demand for condos, and I expect to see that continue until banks will lend on condo development again. Until then, we expect to see our tenant placement services continue to grow, as people who would buy condos — if they were available — choose modern apartment developments and become renters and need help relocating in our tight rental market.”
Buzz Ellis, managing director, JLL (Office): “ Overall rents jumped more than 10 percent in 2015, but this rent growth should moderate in 2016 as 1.3 million square feet of new construction and redeveloped properties come online.”
What this Means for You
Though it’s generally high hopes for the future of Portland’s real estate market, it’s helpful to understand the specifics of Portland’s rapidly growing city. There has been a huge jump in supply which could cause rising rents to slow for a period, but if the city’s population continues to grow and the new apartment-style housing is unaffordable, demand can remain strong.