NAI Norris, Beggs & Simpson reports the Portland-area vacancy rate fell to 2.04 percent in the second quarter while the average rent for a one bedroom/one bathroom unit rose $29 over the prior year to $826 or $1.15 per square foot.
The Portland brokerage firm said 2013 and 2014 will be strong years for new construction as developers deliver projects now under construction.
While rents will continue to rise in 2013, they could flatten in 2014 if new construction isn’t matched by economic growth.
There are 5,000 units under construction and another 10,000 proposed, with interest concentrated in downtown Portland and close-in neighborhoods.
The top sale of the quarter was the $97.95 million sale of CYAN PDX, a 352-unit tower in downtown, to TIAA-CREF.
The average rent for a one bedroom/one bathroom apartment, by submarket:
- Downtown $1,402
- Southeast $741
- North/Northeast $952
- Southwest $746
- Gresham/Troutdale $655
- Lake Oswego/West Linn $818
- Wilsonville $686
- Tigard/Tualatin $668
- Beaverton/Aloha $699
- Hillsboro $762
- Clackamas/Oregon City/Milwaukie $662
- Vancouver $645
*Wendy Culverwell –Portland Business Journal