Portland Industrial Market Overview_Q1 2021

LOCATION OVERVIEW

217 CORRIDOR Highway 217 runs straight through this submarket which is the only truck/commuting highway running from Interstate 5 from Tigard to Highway 26 in Beaverton. Contracting and service providers occupy a significant portion of this submarket which is driven by high density housing and suburban office. AIRPORT WAY is named after its proximity to Portland International Airport. It’s is home to over 150 industrial tenants including, Portland’s Air Cargo Facilities and Portland International Center, a 458 acre logistic center. This submarket has traditionally been the most desired for logistics companies with easy accessibility to major transportation arterials including Interstate 5/205 going north and south and Interstate 84 going east and west. CLACKAMAS/MILWAUKIE runs along the east side of the Willamette River along Interstate 205. Food and beverage groups have been primary users in the area. Super Value, Kroger/Fred Meyer and large freezer/cooler operations have a significant presence in the area. CLOSE-IN NORTHEAST/SOUTHEAST is the original industrial area in the city. It offers older product and is favored for conversions to breweries, distilleries, restaurants or demos for ground up mixed use construction. EAST COLUMBIA CORRIDOR is adjacent to the Columbia River and Interstate 84 running east and west. Amazon is building a multi-story, 875,000 SF sorting facility on former Port of Portland land in the submarket. This submarket has seen some of the largest spec development activity. GATEWAY offers traditional, smaller, free standing warehouses with limited institutional product located along Interstate 84. GUILDS LAKE is the closest submarket to the CBD. It runs adjacent to the Union Pacific Railroad and has realized some of the highest rent appreciation in all of the submarkets due to its ability to service the downtown core. The most notable tenant is Georgia-Pacific, residing in an 844,000 SF building – the largest building in the submarket. HILLSBORO is nicknamed the “Silicon Forest” for the cluster of high tech companies that call this area home, notably: Intel, Tektronix, Planar, HP and Xerox. Highway 26 is the main arterial through this submarket. Hillsboro is characterized by larger industrial and flex product that typically service high tech or footwear and apparel companies. RIVERGATE is where the Port of Portland’s marine Terminal 5 and 6 reside. Portland’s port is one of the largest importers of automobiles on the west coast and is a heavy grain exporter. This submarket has traditionally been the best value of all the submarkets resulting from limited amenities and bigger box availabilities over 50,000 SF. Neighboring Terminal 6 is Columbia Sportswear’s distribution center totaling 815,000 SF. SWAN ISLAND is home to Daimler’s U.S. trucking headquarters. Other large occupiers include UPS and FedEx, Grainger and multiple beverage distribution centers. Swan Island has excellent access to Interstate 5 and Portland’s urban core. TIGARD is located between Highway 99 and Interstate 5. The submarket has large business parks that accommodate various tenant sizes with great access to Interstate 5. TUALATIN/SHERWOOD is popular with owner/users and institutional landlords. Tualatin offers amenities, good schools, housing and close proximity to Interstate 5. VANCOUVER appeals to users with existing business within Washington State. The Port of Vancouver is located west of Interstate 5. Owner/Users are very active north of Vancouver in Ridgefield, leveraging the intersection of Interstate 5 and Interstate 205. WILSONVILLE Straddling Interstate 5, Wilsonville contains major vendors’ distribution centers including: Rite Aid (517,000 SF), Sysco (269,000 SF), and Coca-Cola (145,000 SF). With easy access to Interstate 5 and 205, Wilsonville offers a lot of flexibility for logistics operations.

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