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Q1 2017 End of 2016 Office Report Absorption & Deliveries

Sales Volume & Price

Past 10 Quarters

Based on Office Building Sales of 15,000 SF and Larger

$350

$600

$300

1.6

1.44

1.4 1.16

1.2 $250

$400

$200

$300

$150

0.94

1.0 Millions SF

$500

Deliveries

Net Absorption

Price/SF

Price/SF

Millions of Sales Volume Dollars

Sales Volume

$700

0.74

0.8

0.61

0.6 0.4

$200

$100

$100

$50

0.2

0.29

0.28 0.18 0.01

0.09

0.14 0. 05 0.04 0.03

0.08

0.19 0.16 0.13

0.13

0.0

$0 2013 1q

$0 2014 1q

2015 1q

2016 1q

(0.2)

(0.17)

(0.4)

Source: Costar Property

2014 3q

Inventory Total office inventory in the Portland market area amounted to 99,581,948 square feet in 5,298 buildings as of the end of the fourth quarter 2016. The Class-A office sector consisted of 29,794,863 square feet in 201 projects. There were 1,533 Class-B buildings totaling 45,721,103 square feet, and the Class-C sector consisted of 24,065,982 square feet in 3,564 buildings. Within the Office market there were 264 owner-occupied buildings accounting for 10,955,813 square feet of office space. Sales Activity Tallying office building sales of 15,000 square feet or larger, Portland office sales figures fell during the third quarter 2016 in terms of dollar volume compared to the second quarter of 2016. In the third quarter, 14 office transactions closed with a total volume of $127,609,724. The 14 buildings totaled 725,688 square feet and the average price per square foot equated to $175.85 per square foot. That compares to 16 transactions totaling $352,629,307 in the second quarter 2016. The total square footage in the second quarter was 1,553,727 square feet for an average price per square foot of $226.96. Total office building sales activity in 2016 was down com-pared to 2015. In the first nine months of 2016, the market saw 48 office sales transactions with a total volume of $635,716,531. The price per square foot averaged $204.93. In the same first nine months of 2015, the market posted 51 transactions with a total volume of $1,155,564,960. The price per square foot aver-aged $261.78. Cap rates have been lower in 2016, averaging 6.06% compared to the same period in 2015 when they averaged 6.59%. One of the largest transactions that has occurred within the last four quarters in the Portland market is the sale of Pacwest Center in Portland. This 545,522-square-foot office building sold for $170,000,000, or $311.63 per square foot. The property sold on 12/21/2016.� Report compiled and edited by: Certified Research Analyst - John D. Walz; and Research Associate- Natalia Vanni

For more information please contact: SVN Imbrie Realty at 503-208-9400

2015 1q

2015 3q

2016 1q

2016 3q

Vacancy by Class Percent of All Vacant Space by Class Portland

14%

50%

Class A

36%

Class B

Class C

Portland’s Vacancy Stays at 7.5% Net Absorption Positive 126,176 SF in the Quarter

Jan 2017 office flyer  
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