Portland's industrial sector is weathering the pandemic-induced economic disruption relatively well. Leading indicators like vacancy and rent growth have softened a bit but are still at healthy levels. And thanks to the growth of e-commerce and delivery services, the industrial market is better positioned to navigate COVID-19 than other commercial asset types.
There's is still a sizable amount of industrial construction going on in Portland, but the bulk of it is owner-occupied or preleased, and thus won't impact market dynamics significantly.
The industrial sector's stability in the face of economic turmoil continued to draw investors to the region. The four-quarter stretch from 19Q2 to 20Q2 was the busiest for industrial sales in Portland's history, though the bulk of that trading occurred before the pandemic. Average pricing, which more than doubled over the past decade, continued to rise at a steady pace, and average cap rates compressed below 6%. Favorable demographics, a structurally low vacancy rate, and exposure to trade by way of a moderately sized port continue to underpin the health of the local industrial market.