JLL will be releasing our Q1 2016 Portland Office Market report to clients later today. Highlights of these reports will be posted shortly.
You will note that as tenant demand surges in Portland we are seeing articles and reports for the bay Area that paint a different picture. Important to note is that Portland is under built and continues to benefit from the out of control real estate costs and cost of living in the Bay Area. Our demand is primarily concentrated in CBD and tech - JLL is tracking almost 4 million square feet of tenants in the market, a level 11 percent higher than any previous month on record. 32 percent of this demand can be attributed to high tech/information services tenants and 13 percent of this demand is coming from professional and business services tenants.
With earnings pressure on public and private companies we will continue to see established venture backed companies work to reduce costs and stay away from raising additional capital at lower valuations. While the demand spigot and shut of any time, Portland remains a desirable under built market continuing its historic trend of demand surpassing supply as PDX has always been late to secure real estate capital and early to dry up. For now real estate capital continues to flow in PDX, though any PDX tech correction will have an impact.
A few articles of relevance:
Possible concerns for PDX - Bloomberg Article on SF Subleases
SF Business Journal on SF vs Silicon Valley - SF hit harder on Startup pullback